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Exercise 7-31 (Algorithmic) (LO. 7) Emily, who is single, sustains an NOL of $17,880 in 2020. The loss is carried forward to 2021. For 2021,
Exercise 7-31 (Algorithmic) (LO. 7) Emily, who is single, sustains an NOL of $17,880 in 2020. The loss is carried forward to 2021. For 2021, Emily' income tax information before taking into account the 2020 NOL is as follows: Adjusted gross income $89,400 Itemized deductions*: Medical ($10,728 - (10% x $89,400)] $1,788 Taxes 13,410 Interest expense on home mortgage 26,820 (42,018) Taxable income $47,382 * The 2020 single standard deduction is $12,400; Emily's itemized deductions will exceed the 2021 single standard deduction (after adjustment for inflation). Assume that the medical expense AGI floor is 10% in 2021 (it was 7.5% for 2017 through 2020). How much of the NOL carryforward can Emily use in 2021, and what is her adjusted gross income and her taxable income? Emily may use $ of the NOL, resulting in adjusted gross income of $ and taxable income $
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