Chapter 7, Problem 46P

Soong, single and age 32, had the following items for the tax year 2019:

• Salary of $30,000.
• Interest income from U.S. government bonds of $2,000.
• Dividends from a foreign corporation of $500.
• Sale of small business § 1244 stock on October 20, 2019, for $20,000. The stock had been acquired two years earlier for $65,000.
• Business bad debt of $4,000.
• Nonbusiness bad debt of $5,000.
• Sale of small business § 1244 stock on November 12, 2019, for $4,000. The stock had been acquired on June 5, 2019, for $800.
• Sale of preferred stock on December 4, 2019, for $40,000. The stock was acquired four years ago for $18,000.
• Total itemized deductions of $25,000 (no casualty or theft).

1. a. Determine Soong's NOL for 2019-
2. b. Assuming that Soong had taxable income for each of the last five years, deter mine to which years the 2019 NOL should be applied.