a. Compute Gus's taxable income or loss for 2017.

2017
Net business income/loss from grocery store	$
Salary
Ordinary nonbusiness income
Net short-term capital gain
Adjusted gross income/loss	$
Less: Itemized deductions
Less: Personal exemptions
Loss	$

What are Gus's excess of nonbusiness deductions over nonbusiness income and net capital gains for 2017? $____________?

Gus's NOL for 2017 is $. __________?

b. Determine Gus's 2015 recomputed AGI and modified taxable income as a result of carrying back the NOL. If required, use the minus sign to indicate a loss.

2015
Net business income		$60,000
Interest income		2,000
2017 net operating loss
Recomputed AGI		$
Itemized deductions
Charitable contributions	$
Medical expenses	$
Less: Total itemized deductions
Less: Personal exemptions
Modified taxable income		$

c. The amount of Gus's 2017 NOL to be carried forward from 2015 to 2016 is $___________?

Problem 7-48 (LO. 7) Gus, who is married and files a joint return, owns a grocery store. In 2017, his gross sales were $276,000, and his operating expenses were $320,000. Other items on his 2017 return were as follows: Nonbusiness capital gains (short-term) Nonbusiness capital losses (long-term) Itemized deductions (no casualty or theft) Ordinary nonbusiness income Salary from part-time job In 2015, Gus had a taxable income of $21,100, computed below $20,000 9,000 18,000 8,000 10,000 Net business income Interest income Adjusted gross income Less: Itemized deductions $60,000 2,000 $62,000 Charitable contributions of $40,000, limited to 50% of AGI Medical expenses limited to excess of 10% of AGI ($8,100-$6,200) Total itemized deductions $31,000 $1,900 (32,900) (8,000) $21,100 Less: Personal exemptions (2 x $4,000) Taxable income