Jonathan incurs the following transactions during 2011. Without considering the following transactions, his 2011 AGI is $ 40,000. Analyze the transactions and answer the questions below.
On March 10, 2011 he sells a painting for $ 2,000. Jonathan is the artist and he completed the painting in 1996. He never used the painting on the walls of home and always kept stored in his closest for safekeeping. He felt that the painting would someday be worth a lot of money. Needing the money, he sold the painting in 2011. His basis for the painting, including the frame, is $ 50.
On Jun 18, 2011, he receives $ 28,500 from the sale of stock purchased by his uncle in 1991 for $ 10,000. He inherited this stock on Jun 19, 2010 as a result of his uncle's death. The fair market value of the stock on his date of death was $ 30,000.
On July 30, 2011, he sells land for $ 25,000. This land was received as a gift from his brother on April 8, 2010, when the land's fair market value was $ 30,000. His brother purchased the land for $ 43,000 on October 8, 1993. No gift was paid by his brother.
1 What is his NSTCL or NSTCG
2 What is his NLTCL or NLTCG
3 What is the $$ effect of capital gains (losses) on his AGI?