Bill,age 40,is Married with Two Dependents Based on the Above Information,what Is the Net Operating Loss

question 51

Multiple Choice

Bill,age 40,is married with two dependents.Bill had the following items for the 2014 year: $\begin{array}{lr}\text { Bill's business loss } & (\$ 40,000) \\\text { Bill's salary } & 50,000 \\\text { Personal casualty gains } & 5,000 \\\text { Personal casualty loss (after } \$ 100 \text { floor) } & (23,000) \\\text { Other itemized deductions } & (15,000) \end{array}$ Based on the above information,what is the net operating loss for Bill and his spouse for the 2014 year?

• A)$0
• B)$5,000
• C)$7,000
• D)$12,000
• E)None of these

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Definitions:

Economic Benefit

The advantage or gain received from resources or actions, typically measured in terms of monetary value.

Exempt

Income, property, or persons not subject to taxation under certain conditions or qualifications.

Itemized Deduction

Itemized Deduction involves listing individual tax deductions for which a taxpayer qualifies, as opposed to taking a standard deduction, to reduce taxable income.

Tax Refund

The return of excess taxes paid to a taxpayer by the government, typically after the annual income tax filing.