Question
During 2017, Rick and his wife, Sara, had the following items of income and expense to report: Gross receipts from business $400,000 Business expenses 525,000
During 2017, Rick and his wife, Sara, had the following items of income and expense to report:
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A. Assuming that Rick and Sara file a joint return, what is their taxable income (or loss) for 2017?
If required, use the minus sign to indicate a loss.
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B. What is the amount of Rick and Sara's NOL for 2017?
Rick and Sara's NOL for 2017 is ( $ ).
C. To what years can Rick and Sara's NOL be carried? ( Multiple Choice )
It can be carried back ( 2 / 5 / 7 / 20 ) years and forward ( 2 / 3 / 5 / 20 ) years.
D. Indicate whether the following statements are "True" or "False" regarding the rationale for excluding the items that do not affect the NOL computation.
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