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Xinran, who is married and files a joint return, owns a grocery store. In 2022, his gross sales were $276,000 and his operating expenses were $320,000. Other items on his 2022 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 job (spouse) 10,000

In 2023, Xinran provides the following information:

Net business income $60,000

Salary (spouse) 25,000

Interest income 2,000

Adjusted gross income $87,000

Less: Itemized deductions*

Charitable contributions (cash) $35,000

Medical expenses of $6,925 [limited to the amount in excess of 7.5% of AGI ($6,925 $6,525)] 400

Total itemized deductions $35,400

* The 2022 married filing jointly standard deduction is $25,900; Xinran's itemized deductions will exceed the 2023 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 zero, enter "0".

Question Content Area a. Compute Xinran's taxable income (or loss) for 2022?

2022

Net business income/loss from grocery store $ fill in the blank ( )

Salary fill in the blank ( )

Ordinary nonbusiness income fill in the blank ( )

Net short-term capital gain fill in the blank ( )

Adjusted gross income/loss $fill in the blank f ( )

Less: MFJ standard deduction fill in the blank ( )

Less: Deduction for qualified business income fill in the blank ( )

Taxable loss $fill in the blank ( )

Question Content Area b. Compute Xinran's NOL for 2022. $fill in the blank ( )

Question Content Area c. Determine Xinran's taxable income for 2023.

2023

(1) Determine taxable income before application of the NOL:

Net business income $fill in the blank ( )

Salary fill in the blank ( )

Interest income fill in the blank ( )

Adjusted gross income $fill in the blank ( )

Less: Itemized deductions: fill in the blank ( )

Less: Deduction for qualified business income:

Grocery store fill in the blank ( )

Taxable income $fill in the blank ( )

(2) Determine the NOL deduction:

1. The NOL carryforward $fill in the blank ( )

2. 80% of taxable income computed in step 1: $fill in the blank ( )

(3) Determine final taxable income:

Net business income $fill in the blank ( )

Salary fill in the blank ( )

Interest income fill in the blank ( )

NOL deduction fill in the blank ( )

Adjusted gross income $fill in the blank ( )

Less: Itemized deductions Charitable contributions $fill in the blank ( )

Medical expenses fill in the blank ( ) fill in the blank ( )

Less: Deduction for qualified business income: Grocery store $fill in the blank ( )

Taxable income $fill in the blank a ( )