Joshua and Erica are married and file a joint return. Joshua owns a coffee shop operated as
Question:
Joshua and Erica are married and file a joint return. Joshua owns a coffee shop operated as a sole proprietorship, and Erica is a kindergarten teacher. During the year, they had the following income deductions:
Erica’s wages $42,000
Interest and dividends $650
Long-term capital gain on stocks $2,000
Net loss from the coffee shop ($60,000)
NOL carryforward from 2017 ($1,000)
Adjusted gross income (AGI) ($16,350)
Standard deduction ($24,000)
Taxable income ($40,350)
What is their net operating loss (NOL)?
a. $16,350
b. $18,000
c. $19,000
d. $20,000
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman