Lowell and Thelma's adjusted gross income is affected by which of the following deductions?

The adjusted gross income (AGI) is a crucial starting point for determining taxable income and eligibility for various tax credits and deductions. Among the options provided, the net long-term capital loss directly affects Lowell and Thelma's AGI.

When an individual realizes a capital loss—specifically, a long-term capital loss—it can be used to offset capital gains. If the losses exceed the gains, up to $3,000 ($1,500 if married filing separately) can be deductible against other types of income, which ultimately reduces the AGI. This deduction is particularly important because it creates an opportunity to lower taxable income through capital losses.

In contrast, property taxes are generally considered an itemized deduction rather than a direct reduction to AGI, affecting taxable income rather than AGI itself. Cash gifts are not deductible for the gift giver and do not impact AGI. Alimony payments, which were previously deductible for agreements executed before 2019, do not affect AGI for agreements made after December 31, 2018, as such payments are no longer tax-deductible under the Tax Cuts and Jobs Act.

Thus, the net long-term capital loss is the only option that directly reduces Lowell and Thelma's adjusted gross income