Akeem, who does not itemize, incurred a net operating loss (NOL) of $50,000 in 2016. His deductions in 2016 included AMT tax preference items of $20,000, and he had no AMT adjustments. Assuming the NOL is not carried back, what is Akeem's ATNOLD carryover to 2017?
A)$50,000
B)$30,000
C)$20,000
D)$40,000
E)None of the above

Question

Quizplus · Accepted Answer

The ATNOLD (Alternative Tax Net Operating Loss Deduction) carryover is calculated by reducing the NOL by any AMT tax preference items. Akeem's NOL is $50,000, and he has $20,000 in AMT tax preference items, so the ATNOLD carryover is $50,000 - $20,000 = $30,000.

Akeem, Who Does Not Itemize, Incurred a Net Operating Loss