In 2018, Stephanie had total non-business income of $1,500. Her 2018 adjustments and deductions include a deductible IRA contribution of $4,000, personal property taxes of $587, real estate tax of $1,831, mortgage interest of $9,914, and state tax withheld on wages $615. Using the adjustments and deductions listed above, compute Stephanie's net operating loss (NOL) non-business deductions in excess of nonbusiness income modification.

Explain please!

Stephanie's net operating loss (NOL)

?-$15,474.

Step-by-step explanation

Stephene earned non-business income of $1,500 and then incurred expenses as follows;

Deductible IRA contribution of $4,000

Personal property taxes $587

Real estate tax $1,831

Mortgage interest $9,941

Withheld taxes on wages $615

Total expenses $16,974

Since the non-business income was $1,500 the net loss operating loss for Stephen was $1,500 - $16,974 = -$15,474.

The listed items qualify for deduction hence the amount of income that Stephen earned was little to manage making an operating profit. Therefore, the tax year 2018 Stephen made a big operating loss of -$15,474.