Net Operating Loss. During 2019, Karen, a single taxpayer, reports the following income and expense items relating to her interior design business:
|
Revenues |
$52,000 |
|
Cost of goods sold |
41,000 |
|
Advertising |
3,300 |
|
Office supplies |
1,700 |
|
Rent |
13,800 |
|
Contract labor |
28,000 |
Karen also worked part-time during the year, earning $13,500. She reports a long-term capital gain of 54,200, and a short-term capital loss of $3,800. Her itemized deductions total 55.200.
a. What is Karen’s taxable income or loss for the year?
b. What is Karen’s NOL for the year?
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