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Larry had taxable income of $16,100 computed as follows: Net business income $45,000 Interest income $5,000 Adjusted gross income $50,000 Itemized deductions $26,000 Charitable contributions
Larry had taxable income of $16,100 computed as follows: Net business income $45,000 Interest income $5,000 Adjusted gross income $50,000 Itemized deductions $26,000 Charitable contributions $20,000 Medical expenses $6,000 (= $11,000 - $5,000) Exemptions $7,900 Taxable income $16,100 1. Calculate Larrys taxable income for 2016. 2. Calculate Larrys NOL for 2016. 3. Calculate Larrys recomputed taxable income for 2014 after Larry carries back the NOL in 2015. 4. Calculate Larrys remaining 2015 NOL to be carried back to 2015.
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