Mario, a single taxpayer with two dependent children, has the following items of income and expense during 2020: Gross receipts from business $144,000 Business expenses 180,000 Net capital gain 22,000 Interest income 3,000 Itemized deductions (state taxes, residence interest, and contributions) 24,000 a. Determine Mario's taxable income or loss for 2020. Adjusted gross income Less: itemized deductions Less: Deduction for qualified business income Loss b. Indicate which items are adjustments to taxable income or loss when computing an NOL. Business receipts Business Expenses Net capital gain Interest income Itemized deductions c. Determine Mario's NOL for 2020. Mario's NOL is ?
Mario, a single taxpayer with two dependent children, has the following items of income and expense during 2020: Gross receipts from business $144,000 Business expenses 180,000 Net capital gain 22,000 Interest income 3,000 Itemized deductions (state taxes, residence interest, and contributions) 24,000 a. Determine Mario's taxable income or loss for 2020. Adjusted gross income Less: itemized deductions Less: Deduction for qualified business income Loss b. Indicate which items are adjustments to taxable income or loss when computing an NOL. Business receipts Business Expenses Net capital gain Interest income Itemized deductions c. Determine Mario's NOL for 2020. Mario's NOL is ?
Chapter10: Deduct Ions And Losses: Certain Itemized Deduct Ions
Section: Chapter Questions
Problem 38P
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Question
Mario, a single taxpayer with two dependent children, has the following items of income and expense during 2020:
Gross receipts from business | $144,000 |
Business expenses | 180,000 |
Net |
22,000 |
Interest income | 3,000 |
Itemized deductions (state taxes, residence interest, and contributions) | 24,000 |
a. Determine Mario's taxable income or loss for 2020.
|
b. Indicate which items are adjustments to taxable income or loss when computing an NOL.
Business receipts | |
Business Expenses | |
Net capital gain | |
Interest income | |
Itemized deductions |
c. Determine Mario's NOL for 2020. Mario's NOL is ?
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