2.99 See Answer

Question: Assume the same facts as in Problem


Assume the same facts as in Problem I:8-56, except that the interest on their personal residence is $12,100 and they also have a $4,500 deductible casualty loss on personal property (after limitations).
a. What is Michelle and Mark’s taxable income or loss for the year?
b. What is Michelle and Mark’s NOL for the year?

Problem 8-56:
Michelle and Mark are married and file a joint return. Michelle owns an unincorporated dental practice. Mark works part-time as a high school math teacher, and spends the remainder of his time caring for their daughter. During 2017, they report the following items:
Mark’s salary……………………………………………………………..$18,000
Interest earned on savings account……………………………….1,200
Interest paid on personal residence……………………………..7,100
Itemized deductions for state and local taxes……………..3,400
Items relating to Michelle’s dental practice
Revenues……………………………………………………………….65, 000
Payroll and salary expense……………………………………..49,000
Supplies…………………………………………………………………17,000
Rent…………………………………………………………………….. 16,400
Advertising…………………………………………………………… 4,600
Depreciation…………………………………………………………. 8,100


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