Akeem, who does not itemize, incurred a net operating loss NOL) of $50,000 in 2017. His deductions in 2017 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 2018?
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) is calculated by reducing the NOL by tax preference items. Akeem's NOL is $50,000, and he has $20,000 in AMT tax preference items. Therefore, the ATNOLD carryover to 2018 is $50,000 - $20,000 = $30,000.

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