Thomas believes that he has an NOL for the current year and plans to carry it forward,

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Thomas believes that he has an NOL for the current year and plans to carry it forward, offsetting it against future income. In determining his NOL, Thomas offset his business income by alimony payments he made to his ex-spouse and contributions he made to his traditional Individual Retirement Account (IRA). His reason for using these items in the NOL computation is that each item is a deduction for AGI. Identify the relevant tax issues for Thomas.

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Related Book For  answer-question

South-Western Federal Taxation 2020 Essentials Of Taxation Individuals And Business Entities

ISBN: 9780357109175

23rd Edition

Authors: Annette Nellen, James C. Young, William A. Raabe, David M. Maloney

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