$*****$

Scenario $5$: Net Operating Loss $($NOL$)$ Utilization

Business $($sole proprietorship$)$ net loss: $($$$55,000)$

Prior Year NOL carryforward available: $$20,000$

Wages: $$38,000$

Interest and Dividend Income: $$900$

Itemized Deductions: $$16,000$

Allowable deduction for self$-$employment tax: None

Calculate:

The amount of the NOL that can be deducted in the current year.

AGI, Taxable Income, and Total Tax Liability