Ruth,age 66,sustains a Net Operating Loss (NOL)of $15,000 for 2016

question 14

Essay

Ruth,age 66,sustains a net operating loss (NOL)of $15,000 for 2016.Because Ruth had no taxable income in 2014,the loss is carried back to 2015.For 2015,the joint income tax return of Ruth and her husband was as follows:
Salary
$20,000
Interest income
5,000
Net short-term capital loss
(2,000)
AGI
$23,000
Itemized deductions
Charitable contributions
$4,000
Medical expenses [$2,575 - ($23,000 × 10%)]
275
Interest
5,000
Taxes
2,500
(11,775)
Personal exemptions (2 × $4,000)
(8,000)
Taxable income
$ 3,225
Calculate Ruth's remaining 2016 NOL to be carried to 2017.

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Definitions:

Domestic Consumption

The aggregate sum of products and services used within the boundaries of a nation.

Domestic Production

The total value of all goods and services produced within a country's borders.

Imports

Goods or services brought into one country from another for sale, often subject to tariffs, quotas, and trade agreements.

International Trade

The exchange of goods and services between countries, involving exports and imports.