Rick and sara had no taxable income for the years 2005 2006

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Rick and Sara had no taxable income for the years 2005, 2006, 2007, and 2008 and $4000 of taxable income for 2009 computed as follows:

  • Salary $25,000
  • Capital loss ( $1,000)
  • AGI $24,000

Less Itemized deduction

  • Charitable contributions limited to 50% of AGI $12,000
  • Medical expenses of $2100 limited $300
  • To in excess of 7.5% (2100-1800) ($12,300)
  • Exemptions (2 * $3,650) ($7300)
  • Taxable income $4,400

a. Determine Rick and Sara's recomputed taxable income for 2009
b. Determine the amount of Rick and Sara's 2010 NOL to be carried forward to 2011.

Reference no: EM13598393

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