51. LO.7 Assume that in addition to the information in Problem 50, Rick and Sara had no...
Question:
51. LO.7 Assume that in addition to the information in Problem 50, Rick and Sara had no taxable income for 2008, 2009, 2010, and 2011 and $4,100 of taxable income for 2012 computed as follows:
Salary $ 25,000 Capital loss (1,000)
Adjusted gross income $ 24,000 Less: Itemized deductions Charitable contributions of $20,000, limited to 50% of AGI $12,000 Medical expenses of $2,100, limited to the amount in excess of 7.5% of AGI ($2,100 − $1,800) 300 Total itemized deductions (12,300)
Exemptions (2 × $3,800) (7,600)
Taxable income $ 4,100
a. Determine Rick and Sara’s recomputed taxable income for 2012.
b. Determine the amount of Rick and Sara’s 2013 NOL to be carried forward to 2014.
Step by Step Answer:
South-Western Federal Taxation 2014 Corporations Partnerships Estates And Trusts
ISBN: 9781285424484
37th Edition
Authors: William H. Hoffman Jr., William A. Raabe, James E. Smith, David M. Maloney, James C. Young