Bill,age 40,is married with two dependents.Bill had the following items for the 2016 year:
Bill's business loss
($40,000)
Bill's salary
50,000
Personal casualty gains
5,000
Personal casualty loss (after $100 floor)
(23,000)
Other itemized deductions
(15,000)

Based on the above information,what is the net operating loss for Bill and his spouse for the 2016 year?

Question

Bill,age 40,is married with two dependents.Bill had the following items for the 2016 year:
Bill's business loss
($40,000)
Bill's salary
50,000
Personal casualty gains
5,000
Personal casualty loss (after $100 floor)
(23,000)
Other itemized deductions
(15,000)
​
Based on the above information,what is the net operating loss for Bill and his spouse for the 2016 year?

Quizplus · Accepted Answer

The net operating loss (NOL) is calculated by considering business losses and other allowable deductions. Bill's business loss is $40,000. His salary is $50,000, which offsets the business loss, leaving $10,000. Personal casualty losses and gains are not considered in NOL calculations. Other itemized deductions of $15,000 are considered, resulting in a net operating loss of $7,000 ($10,000 - $15,000).

Bill,age 40,is Married with Two Dependents