Ruth, Age 66, Sustains a Net Operating Loss (NOL) of $15,000

question 109

Essay

Ruth, age 66, sustains a net operating loss (NOL) of $15,000 for 2017. Because Ruth had no taxable income in 2015, the loss is carried back to 2016. For 2016, the joint income tax return of Ruth and her husband was as follows:

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Definitions:

Incandescent Bulbs

Electric light sources that produce light by heating a filament wire to a high temperature.

Tungsten Lightbulb

A type of incandescent light bulb that uses a tungsten filament to produce light when heated by an electric current.

Candle Power

A measure of light intensity now largely replaced by the metric unit, candela.

Florescent Light

An energy-efficient lighting device using mercury vapor to emit UV light, which then causes a phosphorescent coating to glow.