Stella,age 38,is single with no dependents.The following information was obtained from her personal records for the 2016 year.
Salary
$30,000
Interest income
7,000
Alimony received
12,000
Individual retirement account contribution
2,000
Home mortgage interest expense
4,000
Property taxes
2,000
Personal casualty loss (after the $100 floor)
38,000
Stolen investment property
16,000
Unreimbursed employee business loss
3,000

Based on the above information,what is Stella's net operating loss for 2016?

Question

Stella,age 38,is single with no dependents.The following information was obtained from her personal records for the 2016 year.
Salary
$30,000
Interest income
7,000
Alimony received
12,000
Individual retirement account contribution
2,000
Home mortgage interest expense
4,000
Property taxes
2,000
Personal casualty loss (after the $100 floor)
38,000
Stolen investment property
16,000
Unreimbursed employee business loss
3,000
​
Based on the above information,what is Stella's net operating loss for 2016?

Quizplus · Accepted Answer

Stella's net operating loss is calculated by considering her total income and allowable deductions. Her total income is $49,000 ($30,000 salary + $7,000 interest income + $12,000 alimony). The allowable deductions include the IRA contribution ($2,000), home mortgage interest ($4,000), property taxes ($2,000), and personal casualty loss ($38,000). The stolen investment property and unreimbursed employee business loss are not deductible for NOL purposes. The total deductions are $46,000, resulting in a net operating loss of $10,360 ($49,000 - $46,000 - $38,000).

Stella,age 38,is Single with No Dependents