Net Operating Loss Deduction. Michelle and Mark are married and file a joint return. Michelle owns an unincorporated dental practice. Mark works part-time as a high school math teacher, and spends the remainder of his time caring for their daughter. During 2021, they report the following items: Mark's salary Interest earned on savings account Interest paid on personal residence Itemized deductions for state and local taxes Items relating to Michelle's dental practice Revenues Payroll and salary expense Supplies Rent $18,000 1,200 12,700 9,400 65,000 49,000 17,000 16,400 4,600 8,100 Advertising Depreciation Net Operating Loss Deduction. Assume the same facts as in Problem 1:9-55, except in addition to the other itemized deductions Michelle and Mark suffer a $4,500 deductible personal casualty loss (after limitations). a. What is Michelle and Mark's taxable income or loss for the year? b. What is Michelle and Mark's NOL for the year?
Net Operating Loss Deduction. Michelle and Mark are married and file a joint return. Michelle owns an unincorporated dental practice. Mark works part-time as a high school math teacher, and spends the remainder of his time caring for their daughter. During 2021, they report the following items: Mark's salary Interest earned on savings account Interest paid on personal residence Itemized deductions for state and local taxes Items relating to Michelle's dental practice Revenues Payroll and salary expense Supplies Rent $18,000 1,200 12,700 9,400 65,000 49,000 17,000 16,400 4,600 8,100 Advertising Depreciation Net Operating Loss Deduction. Assume the same facts as in Problem 1:9-55, except in addition to the other itemized deductions Michelle and Mark suffer a $4,500 deductible personal casualty loss (after limitations). a. What is Michelle and Mark's taxable income or loss for the year? b. What is Michelle and Mark's NOL for the year?
Chapter8: Taxation Of Individuals
Section: Chapter Questions
Problem 26P
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Transcribed Image Text:Net Operating Loss Deduction. Michelle and Mark are married and file a joint return.
Michelle owns an unincorporated dental practice. Mark works part-time as a high school
math teacher, and spends the remainder of his time caring for their daughter. During
2021, they report the following items:
Mark's salary
Interest earned on savings account
Interest paid on personal residence
Itemized deductions for state and local taxes
Items relating to Michelle's dental practice
$18,000
1,200
12,700
9,400
Revenues
65,000
49,000
17,000
16,400
4,600
8,100
Payroll and salary expense
Supplies
Rent
Advertising
Depreciation
Net Operating Loss Deduction. Assume the same facts as in Problem I:9-55, except in
addition to the other itemized deductions Michelle and Mark suffer a $4,500 deductible
personal casualty loss (after limitations).
a. What is Michelle and Mark's taxable income or loss for the year?
b. What is Michelle and Mark's NOL for the year?
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