Question

$400, fair market value $300). THU VILYLIL IT ILUITIN 10-19 NOL Items. Indicate whether the following items can create a net operating loss for an individual taxpayer. a. Business capital loss b. Non-business bad debt C. Casualty loss d. Interest expense on mortgage secured by primary residence e. Employee business expenses f. Contribution to Individual Retirement Account 10-20 Items Considered in Computing an NOL. Indicate whether the following items are considered in computing the net operating loss deduction for an individual. a. Salary b. Capital gain on the sale of investment property c. Interest income d. Interest on a mortgage on a primary residence

Answer 1

10 19 solution: (a) Business capital loss & cannot net operating loss for an individual create a taxpayera (6) Non- Business bad debt o no net operating loss for an individual taxpayer. (C) Casualty loss & No net operating loss for an individual tax payer. ad) Interest expense on mootgage secured by primary residence & Decrease in het operating loss for an individual taxpayer. e) Employee business expenses & Increase in net operating loss for an individual taxpayer. of) contribution to individual Retirement account o Increase in net net operating individual taxpayer. loss for an