An individual taxpayer who does not itemize deductions uses the standard deduction to compute the excess of nonbusiness deductions over the sum of nonbusiness income and net nonbusiness capital gains for purposes of computing net operating loss.

Question

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This statement is true. The standard deduction is used to compute the excess of nonbusiness deductions over the sum of nonbusiness income and net nonbusiness capital gains, which is then used to calculate the net operating loss for an individual taxpayer who does not itemize deductions.

An Individual Taxpayer Who Does Not Itemize Deductions Uses the Standard