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5,000. In 2019, he ger yler's business generat Provide a chronological

5,000. In 2019, he ger yler's business generat Provide a chronological

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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sok roblem 4-13 let Operating Losses (LO 4.9) Tyler, a single taxpayer, generates business income of $3,000 in 2016. In 2017, he generates an NOL of $2,000. In 2018, he incurs another NOL of $5,000. In 2019, he generates a modest business income of $6,000 and then in 2020, the COVID-19 pandemic results in an NOL of $13,000. In 2021, Tyler's business generates income of $13,000. Assume that in all years, Tyler adopts the NOL treatment that results in the earliest and greatest refund. Provide a chronological analysis of Tyler's treatment of NOLS through 2021 and report any NOL carryforward into 2022. In 2017, Tyler his $2,000 NOL against his E income ieaving s of 2016 income. In 2018, Tyler the NOL to in 2019, Tyler can offset of his 2019 income with the - NOL and he has a s carryforward from In 2020, the COVID-19 provisions allows him to carryback to He can now use all of the remaining $ 2018 loss against the 2019 income and then can use another s from 2020 may be carried forward into 2021. After 2020, NOLS are subject to the 80% income limitation. Tyler will be able to use S and have a s of 2020 NOL against the remaining 2019 income. The remaining s NOL in 2021 NOL to carryforward into 2022.
Transcribed Image Text:sok roblem 4-13 let Operating Losses (LO 4.9) Tyler, a single taxpayer, generates business income of $3,000 in 2016. In 2017, he generates an NOL of $2,000. In 2018, he incurs another NOL of $5,000. In 2019, he generates a modest business income of $6,000 and then in 2020, the COVID-19 pandemic results in an NOL of $13,000. In 2021, Tyler's business generates income of $13,000. Assume that in all years, Tyler adopts the NOL treatment that results in the earliest and greatest refund. Provide a chronological analysis of Tyler's treatment of NOLS through 2021 and report any NOL carryforward into 2022. In 2017, Tyler his $2,000 NOL against his E income ieaving s of 2016 income. In 2018, Tyler the NOL to in 2019, Tyler can offset of his 2019 income with the - NOL and he has a s carryforward from In 2020, the COVID-19 provisions allows him to carryback to He can now use all of the remaining $ 2018 loss against the 2019 income and then can use another s from 2020 may be carried forward into 2021. After 2020, NOLS are subject to the 80% income limitation. Tyler will be able to use S and have a s of 2020 NOL against the remaining 2019 income. The remaining s NOL in 2021 NOL to carryforward into 2022.
Problem 4-10 Rental Income and Expenses (LO 4.7) Sherry rents her vacation home for 6 months and lives in it for 6 months during the year. Her gross rental income during the year is $6,000. Total real estate taxes for the home are $2,200, and interest on the home mortgage is $4,000. Annual utilities and maintenance expenses total $2,000, and depreciation expense is $4,500. Calculate Sherry's deductible depreciation, the net income or loss fram the vacation home, and the loss carryforward, if any. Base allocation on number months, rather than days. If your answer value is zero, enter "0". Rental income Expenses: Real estate taxes Mortgage interest Utilities and maintenance Depreciation Net rental income Loss carried forward to 2022
Transcribed Image Text:Problem 4-10 Rental Income and Expenses (LO 4.7) Sherry rents her vacation home for 6 months and lives in it for 6 months during the year. Her gross rental income during the year is $6,000. Total real estate taxes for the home are $2,200, and interest on the home mortgage is $4,000. Annual utilities and maintenance expenses total $2,000, and depreciation expense is $4,500. Calculate Sherry's deductible depreciation, the net income or loss fram the vacation home, and the loss carryforward, if any. Base allocation on number months, rather than days. If your answer value is zero, enter "0". Rental income Expenses: Real estate taxes Mortgage interest Utilities and maintenance Depreciation Net rental income Loss carried forward to 2022
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