Sam and Nancy are married and file a joint tax return every year since 2002. In 2011 their AGI before taking any capital loss into consideration was 75000. Sam and Nancy had a capital loss in 2011 of 20000. Their only potential itemized deduction in 2011 was state and local income taxes of 11600. In 2012 they had the following transactions for tax purposes:

Wage………………………90000

Long term capital gain…...12000

IRC section 1244 loss……10000

State income tax refund….5000

How much capital loss is included? And what is the 2012 AGI?

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