Jed, age 55, is married with no children. During 2016, Jed had the following income and expense
Question:
a. Three years ago, Jed loaned a friend $10,000 to help him purchase a new car. In June of the current year, Jed learned that his friend had been declared bankrupt and had left the country. There is no possibility that Jed will ever collect any of the $10,000.
b. In April of last year, Jed purchased some stock for $5,000. In March of the current year, the company was declared bankrupt, and Jed was notified that his shares of stock were worthless.
c. Several years ago, Jed purchased some § 1244 stock for $120,000. This year, he sold the stock for $30,000.
d. In July of this year, Jed sold some land that he had held for two years for $60,000. He had originally paid $42,000 for the land.
e. Jed received $40,000 of interest income from State of Minnesota bonds.
f. In September, Jed's home was damaged by an earthquake. Jed's basis in his home was $430,000. The value of the home immediately before the quake was $610,000. After the quake, the home was worth $540,000. Because earthquake damage was an exclusion on Jed's homeowner's insurance policy, he received no insurance recovery.
g. Jed received a salary of $80,000.
h. Jed paid home mortgage interest of $14,000.
If Jed files a joint return for 2016, determine his NOL for the year.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
South Western Federal Taxation Individual Income Taxes 2017
ISBN: 9781305873988
40th Edition
Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young, Nellen
Question Posted: