48. LO.7 Mary, a single taxpayer with two dependent children, has the following items of income and expense during 2013:

Gross receipts from business $144,000 Business expenses 180,000 Alimony received 22,000 Interest income 3,000 Itemized deductions (no casualty or theft) 24,000

a. Determine Mary’s taxable income for 2013.

b. Determine Mary’s NOL for 2013.

49. LO.7 Gus, who is married and files a joint return, owns a grocery store. In 2013, his gross sales were $276,000, and operating expenses were $320,000. Other items on his 2013 return were as follows:

Nonbusiness capital gains (short term) $20,000 Nonbusiness capital losses (long term) 9,000 Itemized deductions (no casualty or theft) 18,000 Ordinary nonbusiness income 8,000 Salary from part-time job 10,000 During 2011, Gus had no taxable income. In 2012, Gus had taxable income of $21,500 computed as follows:
Net business income $ 60,000 Interest income 2,000 Adjusted gross income $ 62,000 Less: Itemized deductions Charitable contributions of $40,000, limited to 50% of AGI $31,000 Medical expenses of $6,550, limited to the amount in excess of 7.5% of AGI ($6,550 − $4,650) 1,900 Total itemized deductions (32,900)
Exemptions (2 × $3,800) (7,600)
Taxable income $ 21,500

a. What is Gus’s 2013 NOL?

b. Determine Gus’s recomputed taxable income for 2012.

c. Determine the amount of Gus’s 2013 NOL to be carried forward to 2014.