Akeem, who does not itemize, incurred a net operating loss (NOL) of $50,000 in 2012.His deductions in 2012 included AMT tax preference items of $20,000, and he had no AMT adjustments.Assuming the NOL is not carried back, what is Akeem's ATNOLD carryover to 2013?
A)$50,000.
B)$30,000.
C)$20,000.
D)$40,000.
E)None of the above.

Question

Quizplus · Accepted Answer

Since Akeem does not itemize, he does not have any regular taxable income in 2012. Therefore, his NOL for 2012 is equal to his ATNOLD for 2012.

Akeem's 2012 ATNOLD is calculated as follows:

NOL = $50,000 
AMT tax preference items = $20,000 
ATNOLD = NOL - AMT tax preference items 
ATNOLD = $50,000 - $20,000 
ATNOLD = $30,000

Therefore, Akeem's ATNOLD carryover to 2013 is $30,000.

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