$******$

Scenario $3$: Excess Business Loss Limitations

Net loss from Sole Proprietorship: $($$$80,000)$

Wages $($spouse$\text{'}$s income$)$: $$120,000$

Interest and Dividend Income: $$1,500$

Itemized Deductions: $$24,000$

Allowable deduction for self$-$employment tax: None $($due to the loss$)$

Calculate:

AGI, Taxable Income, and Total Tax Liability before considering the excess business loss rules.

The amount of the business loss that is disallowed in the current year.