Steve and Holly have the following items for 2012: In calculating their net operating loss,and with respect to the above amounts only,what amount must be added back to taxable income (loss)?

Question

Steve and Holly have the following items for 2012:  In calculating their net operating loss,and with respect to the above amounts only,what amount must be added back to taxable income (loss)?

Quizplus · Accepted Answer

The question is asking for the amount that must be added back to taxable income (loss). To determine this, we need to look at the items provided and determine which ones are deductible expenses that reduced taxable income. The only item that qualifies as such is the $1,900 for state income taxes. Therefore, this amount must be added back to taxable income (loss) in order to calculate the net operating loss.

Steve and Holly Have the Following Items for 2012