A Taxpayer Has Low AGI This Year, but Unusually High

question 16

Multiple Choice

A taxpayer has low AGI this year, but unusually high itemized deductions. The one itemized deduction that is allowed to increase the NOL is

• A) medical expenses.
• B) federal disaster casualty loss on personal- use assets.
• C) state and local income and property taxes.
• D) home mortgage interest.

---

Definitions:

Stock Warrants

Financial instruments that give the holder the right to purchase a company's stock at a specified price before the warrant expires.

Exercise Date

The specific date on which an option contract can be executed or acted upon by the holder.

Fixed Compensatory

Relates to a form of compensation or damages that are predetermined and not subject to change.