Question

3. Joshua, a head of household, has income and expenses from the following sources for 2019:

Net loss from his small business                                                                      $ 9,500

Wages from unrelated business                                                                         6,000

Interest income                                                                                                    8,000

Itemized deductions                                                                                            7,500

     How much is Joshua’s net operating loss, if any?

     How is any net operating loss treated?

4.  Maryam is a very successful self-employed hair stylist who incurred the following expenses in her trade or business:

Meals with clients where business was discussed                                         $ 2,000

Meals with clients where business was not discussed                                        750

Meals served at employee meetings                                                                      400

Employee meals while away from home overnight

  (reimbursement given to employees)                                                                 500

Maryam’s meals while away from home overnight                                             500

Tickets to dramatic performance with clients associated with business           300

     How much of the above may Maryam deduct?

Answer 1