Net Operating Loss. During 2019, Karen, a single taxpayer, reports the following income and expense items relating
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Net Operating Loss. During 2019, 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 54,200, and a short-term capital loss of $3,800. Her itemized deductions total 55.200.
a. What is Karen's taxable income or loss for the year?
b. What is Karen's NOL for the year?
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Related Book For
Federal Taxation 2020 Comprehensive
ISBN: 9780135196274
33rd Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S. Hulse
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