Michelle and Mark are married and file a joint return. Michelle owns an unincorporated dental practice. Mark
Question:
Michelle and Mark are married and file a joint return. Michelle owns an unincorporated dental practice. Mark works part-time as a high school math teacher, and spends the remainder of his time caring for their daughter. During 2022, they report the following items:
Mark’s salary .............................................................................................................$18,000
Interest earned on savings account...........................................................................1,200
Interest paid on personal residence........................................................................12,700
Itemized deductions for state and local taxes..........................................................9,400
Items relating to Michelle’s dental practice Revenues..........................................65,000
Payroll and salary expense.......................................................................................49,000
Supplies.......................................................................................................................17,000
Rent..............................................................................................................................16,400
Advertising....................................................................................................................4,600
Depreciation.................................................................................................................8,100
a. What is Michelle and Mark’s taxable income or loss for the year?
b. What is Michelle and Mark’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