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John opened a pizza restaurant in 2018 and incurred a net operating loss of $250 for that year. He had no taxable income for 2016
| John opened a pizza restaurant in 2018 and incurred a net operating loss of $250 for that year. He had no taxable income for 2016 and 2017, and he had the following income and deductions for 2019: | |
| Income | Deductions |
| Wages (part-time teacher): $2,250 | NOL from 2018: $250 |
| Interest from savings account: $375 | Net loss from pizza restaurant for 2019: $7,700 |
| NLTCG on sale of business assets: $3,025 | NSTCL on sale of stock: $2,115 |
| Net loss on rental property: $275 | |
| Standard deduction: $12,200 | |
| Question: What is the amount John can deduct for NOL for 2019? | |
| Show your work below: | |
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
