You are finishing your 3rd year in business with $535,000 of gross income and $275,000 in deductions. Two years ago, you had a net loss of $93,000 and last year, you had a net loss of $52,000. Calculate your taxable income for this year.

Taxable Income for this year is $115,000

Explanation:

Particulars                                           Amount ($)

Gross income of 3rd year                   535,000

Less: Net loss of last years                 (145,000)

Gross Income                                       390,000

Less: Deductions                                 (275,000)

Taxable Income                                   $115,000

Working

Net loss of last years = $93,000 + $52,000

= $145,000