60.1K

Verified Solution

Link Copied!

7 Answer the question below using the information provided. John opened a pizza restaurant in 2018 and incurred a net operating loss of $250 for that year. He had no taxable income for 2016 and 2017, and he had the following income and deductions for 2019: 0 1 Income Deductions 2 Wages (part-time teacher): $2,250 NOL from 2018: $250 3 Interest from savings account: $375 Net loss from pizza restaurant for 2019: $7,700 4 NLTCG on sale of business assets: $3,025 NSTCL on sale of stock: $2,115 5 Net loss on rental property: $275 6 Standard deduction: $12,200 7 8 Question: What is the amount John can deduct for NOL for 2019? 9 Show your work below: Case Study Part 1 Case Study Part 2 Ready 4 Part 2 5 1 Using the information provided, prepare the net operating loss (NOL) carryback/carryforward schedule in the Excel template. For column B, enter the 2017 NOL amount. For column C, enter the 2018 NOL amount. If the amount is zero, enter a zero. 6 7 8 9 A B 10 11 NOL Carryback/Carryforward Schedule 2017 NOL 2018 NOL 12 2 Net operating loss (NOL) generated ($115,000) ($55,000) 13 3 Less: NOL carryback to 2014 14 4 Less: NOL carryback to 2015 15 5 Less: NOL carryback to 2016 16 6 Equals: NOL carryforward to 2019 17 7 Less: NOL utilized in 2019 18 8 Equals: NOL carryforward to 2020 19 9 Less: NOL utilized in 2020 20 10 Equals: NOL carryforward to 2021 21 22 Case Study Part 1 Case Study Part 2 Ready

Answer & Explanation Solved by verified expert

See Answer