Emma, a tax payer had employment income of $170,000.This year was particularly rough on her rental property
Question:
Emma, a tax payer had employment income of $170,000.This year was particularly rough on her rental property and she incurred a loss of $10,000. Income from her sole proprietorship “Cupcake Heaven” was $5,700. After a difficult divorce case where by she paid deductible spousal support of $30,0000 as stipulated in the Divorce Agreement , Emma needed cash and had to sell two of her capital property. The result of the disposition generated a Capital Gain of $333,000 on one property and a Capital loss of $400,500.After a very tough year , Emma ended the year on a promising note winning $8,500 in a local lottery
Required
Assuming Emma had in the last 3 years Capital Gains of $20,000 and Taxable income of $45,000. Calculate the current year net income. Indicate the amount and type of any current year loss carry overs.
Expert Answer:
Emmas net income loss for the present year is 118800 Current year losses carry forwarded by Amma are ... View the full answer
