Problem 7-44 (10.1 Xintan, 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 jobs 10,000 In 2022, Xinran provides the following information: Net business income Salary (spouse) $60,000 25,000 2,000 Interest income Adjusted gross income $87,000 Less itemized deductions Charitable contributions (cash) $35,000 Medical expenses of 10,925 (limited to the amount in excess of 7.54 of AGE ($6,925 - $6,525) 400 Total itemized deductions $35.400 The 2021 married filino Jolly standard deduction is $25.100: Xinran's turnized 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 rero, enter "o". a. Compute Xian's taxable income (or) for 2017 2021 Net business income/loss from grocery store 44,000 Check My Work All wave eBook UMUULUTATORIUS 2021 Net business Income/loss from grocery store -44,000 10,000 Salary Ordinary nonbusiness Income Net short term capital gain 8,000 11,000 Adjusted gross income/loss -15,000 Less: MFstandard deduction 25,100 Lens: Deduction for qualified business income 0 -39,000 X Pub Ch The NOL provision is intended as a form of relief for business income and losses. Thus, only losses from the operation of a trade or business for profession), casualty and theft losses, or losses from the conflication of a business by a foreign government can create an NOL. a b. Compote Xiran's NOL for 2021 WOW incorred c. Determine inan tavable income for 2022 eBook Determine Xintan's taxable income for 2022 2022 (1) Determine taxable income before application of the NOL: Net business income 20,000 X Salary Interest income Adjusted gross income Less: Itemized deductions: Less: Deduction for qualified business income: Grocery store Taxable income (2) Determine the NOL deduction: 1. The NOL Carryforward 39,000 X.or 2. 80% of taxable income computed in step 1: s 31,680 X (3) Determine final taxable income: Net business income Salary Interest income NOL deduction Adjusted gross income Less: Itemized deductions Charitable contributions 35,000 1. The NOL Carryforward 39,000 X, or 2. 80% of taxable income computed in step 1: 31,680 ca) 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 IIIII II 35,000 X 400 X Taxable income 7,920 X Check My W Incorred Feedba Partially corred Problem 7-44 (10.1 Xintan, 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 jobs 10,000 In 2022, Xinran provides the following information: Net business income Salary (spouse) $60,000 25,000 2,000 Interest income Adjusted gross income $87,000 Less itemized deductions Charitable contributions (cash) $35,000 Medical expenses of 10,925 (limited to the amount in excess of 7.54 of AGE ($6,925 - $6,525) 400 Total itemized deductions $35.400 The 2021 married filino Jolly standard deduction is $25.100: Xinran's turnized 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 rero, enter "o". a. Compute Xian's taxable income (or) for 2017 2021 Net business income/loss from grocery store 44,000 Check My Work All wave eBook UMUULUTATORIUS 2021 Net business Income/loss from grocery store -44,000 10,000 Salary Ordinary nonbusiness Income Net short term capital gain 8,000 11,000 Adjusted gross income/loss -15,000 Less: MFstandard deduction 25,100 Lens: Deduction for qualified business income 0 -39,000 X Pub Ch The NOL provision is intended as a form of relief for business income and losses. Thus, only losses from the operation of a trade or business for profession), casualty and theft losses, or losses from the conflication of a business by a foreign government can create an NOL. a b. Compote Xiran's NOL for 2021 WOW incorred c. Determine inan tavable income for 2022 eBook Determine Xintan's taxable income for 2022 2022 (1) Determine taxable income before application of the NOL: Net business income 20,000 X Salary Interest income Adjusted gross income Less: Itemized deductions: Less: Deduction for qualified business income: Grocery store Taxable income (2) Determine the NOL deduction: 1. The NOL Carryforward 39,000 X.or 2. 80% of taxable income computed in step 1: s 31,680 X (3) Determine final taxable income: Net business income Salary Interest income NOL deduction Adjusted gross income Less: Itemized deductions Charitable contributions 35,000 1. The NOL Carryforward 39,000 X, or 2. 80% of taxable income computed in step 1: 31,680 ca) 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 IIIII II 35,000 X 400 X Taxable income 7,920 X Check My W Incorred Feedba Partially corred