Problem 7-49 (a) (LO. 1, 4, 7)

Gretel, single and aged 42, had the following income and expense items in 2019:

Nonbusiness bad debt	$4,000
Business bad debt	500
Nonbusiness long-term capital gain	8,200
Nonbusiness short-term capital loss	1,500
Salary	23,000
Interest income	900
Personal casualty gain on an asset held for six months*	6,800
Personal casualty loss on an asset held for three years*	2,000
Personal casualty loss on an asset held for five years* (casualty was in a Federally declared disaster area)	28,000
Interest expense on home mortgage	9,000

*Personal casualty losses exceed gains; therefore, all items are treated as ordinary items. Assume that a personal casualty loss means that the $100 floor already has been deducted.

If an amount is zero, enter "0". If required, use the minus sign to indicate a negative AGI, taxable loss or an NOL.

a. Determine Gretel's taxable income or loss for 2019.

Salary				$
Interest income
Business bad debt
Overall net long-term capital gain
Personal casualty gains
Less: personal casualty losses				$
Adjusted gross income				$
Less itemized deductions:
	Interest expense	$
	Balance of deductible casualty losses
Total itemized deductions				$
Taxable income/loss				$

b. Determine Gretel's NOL for 2019.

Taxable income/loss	$
Excess of nonbusiness capital losses over nonbusiness capital gains
Excess of nonbusiness deductions over nonbusiness income	$
NOL (or adjusted income if positive number)	$

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