3n Mr. and Mrs. Bowie COB had an NOL of s30,000 in 2016. They had no taxable inc

Question

3n Mr. and Mrs. Bowie COB had an NOL of s30,000 in 2016. They had no taxable income for 2014, and S14,250 of taxable income for 2015 computed as follows. REQUIRED: (1) COB's recomputed taxable income for 2015 and (2) Determine the amount of the COB's 2016 NOL to be carried forward to 2017. You must show how you arrived at the answers to receive any credit NO WORK, NO CREDIT. Salary Nonbusiness capital losses (short term) $ 50,000 (4,000 $ 46,000 Adjusted gross income Less: Itemized deductions: Charitable contributions of S24,000, limited to 50% of AG Medical expenses of $5,350, limited to the amount in $23,000 750 excess of 10% of AGI ($5,350-$4,600) Total itemized deductions Exemptions (2 X $4,000) (23,750 (8,000 $ 14250 Taxable income

Explanation / Answer

Salalry $   50,000.00 Capital loss (not allowed) $ 0 AGI $   50,000.00 Less: Itemized deductions Charitable contribution of $24,000, limited to 50% of new AGI $   24,000.00 Medical expenses of $5,350, limited to the amount in excess of 10% of the new AGI ($5,350 – $5,000) $         350.00 Total itemized deductions $   24,350.00 Less: Personal exemptions (not allowed) $ 0 Modified taxable income for 2015(50000-24350) $   25,650.00 Net operating loss for 2016 $ 30,000.00 Modified taxable income for 2015 $ 25,650.00 Net operating loss to carry forward to 2017 $ 4,350.00

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.