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can you please show me how to get what I got wrong and left blank? Xinran, who is married and files a joint return, owns
can you please show me how to get what I got wrong and left blank?
Xinran, who is married and files a joint return, owns a grocery store. In 2021, his gross sales were $276,000, and his operating expenses were $320,000. Other items on his 2021 return were as follows: Nonbusiness capital gains (short-term) $20,000 Nonbusiness capital losses (long-term) 9,000 Itemized deductions 18,000 Ordinary nonbusiness income 8,000 Salary from part-time job 10,000 In 2022, Xinran provides the following information: Net business income $60,000 Salary (spouse) 25,000 Interest income 2,000 Adjusted gross income $87,000 Less: Itemized deductions* Charitable contributions (cash) $35,000 Medical expenses of $6,925 [limited to the amount in excess of 7.5% of AGI ($6,925 - $6,525)] 400 Total itemized deductions $35,400 * The 2021 married filing jointly standard deduction is $25,100; Xinran's itemized deductions will exceed the 2022 standard deduction (after adjustment for inflation). Enter all amounts as positive numbers. However, use the minus sign to indicate a loss. If an amount is zero, enter "O". Enter all amounts as positive numbers. However, use the minus sign to indicate a loss. If an amount is zero, enter "0". a. Compute Xinran's taxable income (or loss) for 2021? 2021 Net business income/loss from grocery store -44,000 Salary 10,000 Ordinary nonbusiness income 8,000 Net short-term capital gain 11,000 Adjusted gross income/loss $ -15,000 Less: MF) standard deduction 25,100 Less: Deduction for qualified business income 0 Loss -40,100 Feedback b. Compute Xinran's NOL for 2021. 44,000 X c. Determine Xinran's taxable income for 2022. 2022 (1) Determine taxable income before application of the NOL: Net business income 60,000 Salary 25,000 Interest income 2,000 Adjusted gross income $ 87,000 Less: Itemized deductions: 35,400 Less: Deduction for qualified business income: Grocery store 3,200 Taxable income 48,400 (2) Determine the NOL deduction: 1. The NOL carryforward $ -34,000 , or 2. 80% of taxable income computed in step 1: $ 44,000 x (3) 3 Determine final taxable income: Net business income Salary Interest income NOL deduction Adjusted gross income Less: Itemized deductions Charitable contributions $ Medical expenses Less: Deduction for qualified business income: Grocery store 20,712 X Taxable income 8,656 X
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