1. The Tax Formula for Individuals (LO 1.3)
Leslie is a single taxpayer who is under age 65 and in good health. For 2014, she has a salary of $23,000 and itemized deductions of $1,000. Leslie is entitled to one exemption on her tax return.
Click here to access the table for the standard deduction.
a. How much is Leslie's adjusted gross income? $
b. In order to minimize taxable income, Leslie will in the amount of $ .
c. What is the amount of Leslie's taxable income? $
5. Net Capital Losses (LO 8.5)
In 2014, Michael has net short-term capital losses of $2,000, a net long-term capital loss of $45,000, and other ordinary taxable income of $45,000. If an amount is zero, enter "0".
a. Calculate the amount of Michael's deduction for capital losses on his tax return for 2014.
$
b. Calculate the amount and nature of his capital loss carryforward.
$ Long-term capital loss carryforward
$ Short-term capital loss carryforward
c. For how long may Michael carry forward the unused loss?