Akeem, who does not itemize, incurred a net operating loss (NOL) of $50,000 in 2018.His deductions in 2018 included AMT tax preference items of $20,000, and he had no AMT adjustments.What is Akeem's alternative tax NOL deduction (ATNOLD) carryover to 2019?
A)$50,000
B)$30,000
C)$20,000
D)$40,000
E)None of these.

Question

Quizplus · Accepted Answer

Akeem's ATNOLD carryover to 2019 is limited to the excess of the NOL over the AMT tax preference items. Therefore, ATNOLD carryover to 2019 = $50,000 - $20,000 = $30,000.

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