During 2021, Karen, a single taxpayer, reports the following income and expense items relating to her interior
Question:
During 2021, Karen, a single taxpayer, reports the following income and expense items relating to her interior design business:
Revenues...........................................................$52,000
Cost of goods sold.............................................41,000
Advertising............................................................3,300
Office supplies......................................................1,700
Rent......................................................................13,800
Contract labor.....................................................28,000
Karen also worked part-time during the year, earning $13,500. She reports a long-term capital gain of $4,200, and a short-term capital loss of $3,800. Her itemized deductions total $5,200.
a. What is Karen’s taxable income or loss for the year?
b. What is Karen’s NOL for the year?
Step by Step Answer:
Pearsons Federal Taxation 2023 Comprehensive
ISBN: 9780137840656
36th Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S Hulse