Gus, who is married and files a joint return, owns a grocery store. In 2017, his gross sales were $276,000, and operating expenses were $320,000. Other items on his 2017 return were as follows:
Nonbusiness capital gains (short term) .................................    $20,000
Nonbusiness capital losses (long term) ..................................        9,000
Itemized deductions (no casualty or theft) ............................      18,000
Ordinary nonbusiness income ................................................        8,000
Salary from part-time job .........................................................     10,000
In 2015, Gus had taxable income of $21,100 computed as follows:

a. What is Gus€™s 2017 NOL?
b. Determine Gus€™s recomputed taxable income for 2015.
c. Determine the amount of Gus€™s 2017 NOL to be carried forward from 2015 to 2016.

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Net business income Interest income Adjusted gross income Less: Itemized deductions Charitable contributions of $40,000, limited to 50% of AGI Medical expenses of $8,100, limited to the amount in excess of 10% of AGI ($8,100 – $6,200) Total itemized deductions Exemptions (2 x $4,000) Taxable income $ 60,000 2,000 $ 62,000 $31,000 1,900 (32,900) (8,000) $ 21,100