Jack,age 30 and Married with No Dependents,is a Self-Employed Individual

question 13

Multiple Choice

Jack,age 30 and married with no dependents,is a self-employed individual.For 2016,his self-employed business sustained a net loss from operations of $10,000.The following additional information was obtained from his personal records for the year:
Nonbusiness long-term capital gain
$ 2,000
Interest income
6,000
Itemized deductions-consisting of taxes and interest
(12,000)
​
Based on the above information,what is Jack's net operating loss for 2016 if he and his spouse file a joint return?

• A)($2,000)
• B)($8,000)
• C)($10,000)
• D)($11,000)
• E)($14,000)

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Definitions:

Extrinsic

Originating from outside an individual, often referring to motivations or rewards that are external rather than internal.

Implicit

Something implied or understood though not directly expressed.

Explicit

Something stated clearly and in detail, leaving no room for confusion or doubt.

Metaphorical

Pertaining to or characterized by metaphor; using figures of speech that imply a comparison between unlike entities.