A taxpayer has low AGI this year,but unusually high itemized deductions.The one itemized deduction that is allowed to increase the NOL is
A)state and local income and property taxes.
B)home mortgage interest.
C)medical expenses.
D)federal disaster casualty loss on personal-use assets.

Question

Quizplus · Accepted Answer

The only itemized deduction that is allowed to increase the Net Operating Loss (NOL) is a federal disaster casualty loss on personal-use assets. State and local income and property taxes, home mortgage interest, and medical expenses are not allowed to increase the NOL.

A Taxpayer Has Low AGI This Year,but Unusually High Itemized