Keri Is a Single Taxpayer and Has a Net Operating

question 78

Essay

Keri is a single taxpayer and has a net operating loss of $30,000 in 2014. Her taxable income for the last 5 years has been about $10,000 each year. She expects 2015 to be a very good year and projects that her income will be over $100,000. If you were Keri's tax advisor, what would you recommend that she do with her 2014 operating loss? Explain.

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Definitions:

Hypervigilance

An increased awareness of sensory inputs paired with an intensified range of actions aimed at identifying potential dangers.

Emotional Numbness

A condition characterized by a lack of emotional response or feeling, often as a result of trauma or stress.

Adjustment Disorder

A psychological response to an identifiable stressor or group of stressors that causes significant emotional or behavioral symptoms.

Depressive Symptoms

Manifestations of depression that can include a persistent sad or empty mood, feelings of hopelessness, and a lack of energy or interest in life.