Julie, who is single, had the following items of income and deduction included on her 2014 Form 1040 income tax return:
Salary    $40,000
Net capital loss deduction             3,000
Itemized deduction (all attributable to a personal casualty loss when a tornado destroyed her vacation home)                45,000
Personal exemption        3,950
What is the amount of Julie’s net operating loss for 2014?
A. $  5,000
B. $  8,000
C. $11,700
D. $45,000

Answer rating: 100% (QA)

A is correct Julies personal casuality loss of 45000 incurred as a r... View the full answer