Question

Stella, age 38, is single with no dependents. The following information was obtained from her personal records for the 2020 year. Salary $30,000 Interest income 7,000 Alimony received 12,000 Individual retirement account contribution 2,000 Home mortgage interest expense 4,000 Property taxes 2,000 Personal casualty loss in a Federal disaster area (after the $100 floor) 38,000 Stolen investment property 16,000

Unreimbursed employee business loss 3,000
​Based on the above information, what is Stella’s net operating loss for 2015?

Answer 1

Net operating loss -$10,360

Step-by-step explanation:

The computation of the net operating loss for the year 2015 is as follows:

Salary $30,000

Interest income 7,000

Alimony received 12,000

Less Individual retirement account contribution 2,000

Adjusted gross income $47,000

Home mortgage interest expense -$4,000

Property taxes -$2,000

Personal casualty loss ($38,000) - ($47,000 × 0.10) -$33,300

Stolen investment property -$16,000

Unreimbursed employee business loss ($3,000) - ($47,000 × 0.02) -$2,060

Net operating loss -$10,360