Akeem, Who Does Not Itemize, Incurred a Net Operating Loss

question 118

Multiple Choice

Akeem, who does not itemize, incurred a net operating loss (NOL) of $50,000 in 2013. His deductions in 2013 included AMT tax preference items of $20,000, and he had no AMT adjustments. Assuming the NOL is not carried back, what is Akeem's ATNOLD carryover to 2014?

• A) $50,000.
• B) $30,000.
• C) $20,000.
• D) $40,000.
• E) None of the above.

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Definitions:

Form W-2

An official document issued by employers in the United States to report an employee's annual wages and the amount of taxes withheld from their paycheck.

Federal Form 940

A United States tax form used by employers to report annual Federal Unemployment Tax Act (FUTA) tax.

Unemployment Tax

A tax paid by employers based on the total payroll and the unemployment claims filed by former employees, financing unemployment benefit programs.

Federal Income Tax

A tax levied by the United States federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.