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Stella, age 38, is single with no dependents. The following information was obta

ID: 2499160 • Letter: S

Question

Stella, age 38, is single with no dependents. The following information was obtained from her personal records for the 2015 year.

Salary

$30,000

Interest income

7,000

Alimony received

12,000

Individual retirement account contribution

2,000

Home mortgage interest expense

4,000

Property taxes

2,000

Personal casualty loss (after the $100 floor)

38,000

Stolen investment property

16,000

Unreimbursed employee business loss

3,000

Based on the above information, what is Stella’s net operating loss for 2015?

Salary

$30,000

Interest income

7,000

Alimony received

12,000

Individual retirement account contribution

2,000

Home mortgage interest expense

4,000

Property taxes

2,000

Personal casualty loss (after the $100 floor)

38,000

Stolen investment property

16,000

Unreimbursed employee business loss

3,000

Explanation / Answer

Stella's Net operating loss for 2015

Income

Salary=$30,000

Interest Income=$7,000

Alimony received=$12,000

Total Income=$49,000

Expenses

Individual retirement account contribution    =$2,000

Home mortgage interest expense                =$4,000

Property taxes                                              =$2,000

Personal casualty loss (after the $100 floor)=$38,000

Stolen investment property                          =$16,000

Unreimbursed employee business loss        =$3,000

Total expenses                                           =$(65,000)

Net operating loss=$16,000

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