Gus, who is married and files a joint return, owns a grocery store. In 2016, his gross sales were $276,000, and operating expenses were $320,000. Other items on his 2016 return were as follows:

Nonbusiness capital gains (short term)..........................................$20,000

Nonbusiness capital losses (long term)..............................................9,000

Itemized deductions (no casualty or theft) .......................................18,000

Ordinary nonbusiness income..............................................................8,000

Salary from part-time job...................................................................10,000

During 2014, Gus had no taxable income. In 2015, Gus had taxable income of $21,100 computed as follows:

a. What is Gus's 2016 NOL?
b. Determine Gus's recomputed taxable income for 2015.
c. Determine the amount of Gus's 2016 NOL to be carried forward to 2017.

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Net business income Interest income Adjusted gross income Less: Itemized deductions Charitable contributions of $40,000, limited to 50% of AGI Medical expenses of $8,100, limited to the amount in excess of 10% of AGI ($8,100 – $6,200) Total itemized deductions Exemptions (2 x $4,000) Taxable income $ 60,000 2,000 $ 62,000 $31,000 1,900 (32,900) (8,000) $ 21,100