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Thomas believes that he has an NOL for the current year and wants to carry it back to a previous year and receive a tax refund. In determining his NOL, Thomas offset his business income by alimony payments he made to his ex-wife, contributions he made to his traditional Individual Retirement Account (IRA), and moving expenses he incurred. His reason for using these items in the NOL computation is that each item is a deduction for AGI.

Required:
Identify the relevant tax issues for Thomas

User Marlana
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1 Answer

3 votes

Answer:

The relevant tax issues for Thomas to consider are whether the amount of NOL would be reduced if ; payments made with regards to Alimony , Moving Expenses and contributions made to Traditional IRA are included .

Step-by-step explanation:

The relevant tax issues for Thomas to consider are whether the amount of NOL would be reduced if ; payments made with regards to Alimony , Moving Expenses and contributions made to Traditional IRA are included .

according to rule : Non business deductions are limited in the Ongoing year's NOL hence Non business deductions made with regards to Alimony , Moving Expenses and contributions made to Traditional IRA are included the amount of NOL will reduce.

User Tanmay
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