1.

Soong, single and age 32, had the following items for the tax year 2016: Salary of $30,000. Interest income from U.S. government bonds of $2,000. Dividends from a foreign corporation of $500. Sale of small business S 1244 stock on October 20, 2016, for $20,000. The stock had been acquired two years earlier for $65,000. Business bad debt of $4,000. Non business bad debt of $5,000. Sale of small business 1244 stock on November 12, 2016, for $4,000. The stock had been acquired on June 5, 2016, for $800. Sale of preferred stock on December 4, 2016, for $40,000. The stock was acquired four years ago for $18,000. Total itemized deductions of $25,000 (no casualty or theft). If required, use the minus sign to indicate a negative AGI or taxable loss. a. Determine Soong's taxable income or loss for 2016 Salary 30,000 2,500 Interest and dividends Less: Ordinary loss on 5 1244 stock 45,000 Less: Business bad debt 4,000 V Net short-term capital loss Net long-term capital gain Net capital gain Adjusted gross income Less: Itemized deductions 25,000 Less: Personal exemption Taxable income/loss Determine Soong's NOL for 2016. If required, use the minus sign to indicate a loss. If an amount is zero, enter "0" Taxable income/loss Personal exemption Excess of nonbusiness deductions over nonbusiness income plus net nonbusiness capital gains Net operating loss for 2016