4-14 Net Operating Losses (LO 4.9) Julie, a single taxpayer, has completed her 2020 Schedule C and her net loss is $40,000. Her only other income is wages of $30,000. Julie takes the standard deduction of $12,400 in 2020. a. Calculate Julie's taxable income or loss. $ -22,400 loss Feedback Check My Work The net operating loss provision is primarily designed to provide relief for trade or business losses. Generally, only losses from the operation of a trade or business, casualty and theft losses, or confiscation losses can generate a net operating loss. The TCJA modified the rules regarding the carry back and carry forward of NOLS. b. Calculate the business and nonbusiness portions of her taxable income or loss. Business: $ 0x loss Nonbusiness: $ 22,400 X loss Feedback Check My Work Partially correct c. Determine Julie's 2020 NOL. 10,000