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?