Cindy had the following income and deductions listed on her 2020 individual income tax return. Business income $37,000 Interest income on personal investments $5,000 Less Business expenses $40,000 Less Nonbusiness deductions $7,000 Loss shown on tax return ($5,000) Compute the amount of Cindy's 2020 net operating loss. Show all of your work.

Cindy had the following income and deductions listed on her 2020 individual income tax return. Business income $37,000 Interest income on personal investments $5,000 Less Business expenses $40,000 Less Nonbusiness deductions $7,000 Loss shown on tax return ($5,000) Compute the amount of Cindy's 2020 net operating loss. Show all of your work.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter9: Deduct Ions: Employee And Self-employed - Related Expenses

Section: Chapter Questions

Problem 38P

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

Cindy had the following income and deductions listed on her 2020 individual income tax return.

Business income $37,000

Interest income on personal investments $5,000

Less Business expenses $40,000

Less Nonbusiness deductions $7,000

Loss shown on tax return ($5,000)

Compute the amount of Cindy's 2020 net operating loss. Show all of your work.

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