Stella, age 38, is single with no dependents.The following information was obtained from her personal records for the 2019 year. $$\begin{array} { l r }
\text { Salary } & \$ 30,000 \
\text { Interest income } & 7,000 \
\text { Alimony received } & 12,000 \
\text { Individual retirement account contribution } & 2,000 \
\text { Home mortgage interest expense } & 4,000 \
\text { Property taxes } & 2,000 \
\text { Personal casualty loss in a Federal disaster area } & 38,000 \
\quad \text { (after the \$100 floor) } & \
\text { Stolen investment property }&16,000
\end{array}$$ Based on this information, what is Stella's net operating loss for 2019?
A)$0
B)($7,200)
C)($8,300)
D)($13,000)
E)None of these.

Question

Stella, age 38, is single with no dependents.The following information was obtained from her personal records for the 2019 year. $$\begin{array} { l r } 
\text { Salary } & \$ 30,000 \
\text { Interest income } & 7,000 \
\text { Alimony received } & 12,000 \
\text { Individual retirement account contribution } & 2,000 \
\text { Home mortgage interest expense } & 4,000 \
\text { Property taxes } & 2,000 \
\text { Personal casualty loss in a Federal disaster area } & 38,000 \
\quad \text { (after the \$100 floor) } & \
\text { Stolen investment property }&16,000
\end{array}$$ Based on this information, what is Stella's net operating loss for 2019?
A)$0
B)($7,200)
C)($8,300)
D)($13,000)
E)None of these.

Quizplus · Accepted Answer

Stella's net operating loss is calculated as follows:
Total income = $70,000 + $7,200 = $77,200
Total deductions = $95,000 + $8,300 = $103,300
Net operating loss = Total income - Total deductions = $77,200 - $103,300 = ($26,100)
However, the maximum net operating loss that can be claimed for the year is $8,300, which is the excess of deductions over income. Therefore, Stella's net operating loss for 2019 is ($8,300).

Stella, Age 38, Is Single with No Dependents Based on This Information, What Is Stella's Net Operating Loss