Akeem, who does not itemize, incurred a net operating loss (NOL) of $50,000 in 2013. His deductions in 2013 included AMT tax preference items of $20,000, and he had no AMT adjustments. Assuming the NOL is not carried back, what is Akeem's ATNOLD carryover to 2014?
A) $50,000.
B) $30,000.
C) $20,000.
D) $40,000.
E) None of the above.

Question

Quizplus · Accepted Answer

The ATNOLD (Alternative Tax Net Operating Loss Deduction) carryover is calculated by reducing the NOL by the AMT tax preference items. Therefore, $50,000 NOL - $20,000 AMT tax preference items = $30,000 ATNOLD carryover to 2014.

Akeem, Who Does Not Itemize, Incurred a Net Operating Loss