Reference no: EM131988567
Soong, single and age 32, had the following items for the tax year 2016:
a. Salary of $30,000.
b. Interest income from U.S. government bonds of $2,000.
c. Dividends from a foreign corporation of $500.
d. Sale of small business § 1244 stock on October 20, 2016, for $20,000. The stock had been acquired two years earlier for $65,000.
e. Business bad debt of $4,000.
f. Nonbusiness bad debt of $5,000.
g. Sale of small business § 1244 stock on November 12, 2016, for $4,000. The stock had been acquired on June 5, 2016, for $800.
h. Sale of preferred stock on December 4, 2016, for $40,000. The stock was acquired four years ago for $18,000.
i. Total itemized deductions of $25,000 (no casualty or theft).
If required, use the minus sign to indicate a negative AGI or taxable loss.
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Salary
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$30,000
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Interest and Dividends
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$2,500
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Less: Ordinary Loss on § 1244 Stock
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$45,000
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Less: Business Bad Debt
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$4,000
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Net Short-Term Capital Loss
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$
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Net Long-Term Capital Gain
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$22,000
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Net Capital Gain
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$
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Adjusted Gross Income
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$
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Less: Itemized Deductions
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$25,000
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Less: Personal Exemption
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$
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Taxable Income/Loss
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$
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Determine Soong's NOL for 2016. If required, use the minus sign to indicate a loss. If an amount is zero, enter "0".
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Taxable Income/Loss
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$
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Personal Exemption
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$
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Excess of nonbusiness deductions over nonbusiness income plus net nonbusiness capital gains
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$
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Net Operating Loss For 2016
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$
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