Jack,age 30 and married with no dependents,is a self-employed individual.For 2014,his self-employed business sustained a net loss from operations of $10,000.The following additional information was obtained from his personal records for the year: $\begin{array}{lll}
\text {Nonbusiness long-term capital gain }&\$2,000\
\text { Interest income}&6,000\\text {Itemized deductions —consisting of taxes and interest }&(12,000)\
\end{array}$
Based on the above information,what is Jack's net operating loss for 2014 if he and his spouse file a joint return?

Question

Jack,age 30 and married with no dependents,is a self-employed individual.For 2014,his self-employed business sustained a net loss from operations of $10,000.The following additional information was obtained from his personal records for the year: $\begin{array}{lll}
\text {Nonbusiness long-term capital gain }&\$2,000\
\text { Interest income}&6,000\\text {Itemized deductions —consisting of taxes and interest }&(12,000)\
\end{array}$
 Based on the above information,what is Jack's net operating loss for 2014 if he and his spouse file a joint return?

Quizplus · Accepted Answer

Jack's net operating loss (NOL) is calculated based on his business loss, which is $10,000. Nonbusiness income and itemized deductions do not affect the calculation of the NOL for tax purposes.

Jack,age 30 and Married with No Dependents,is a Self-Employed Individual