Patrick Has a Business Net Operating Loss of $70,000 in 2015

question 46

Multiple Choice

Patrick has a business net operating loss of $70,000 in 2015. Patrick's business generated significant taxable profits in 2013 and in 2014. Which of the following is true? ​

• A)Patrick may offset income he generated in 2013 and 2014 with 2015's net operating loss by carrying the net operating loss back to each of those tax years.The remaining net operating loss (if any) can be carried forward and used to offset future taxable income.
• B)Patrick may use the net operating loss to offset income from any year he chooses.
• C)Net operating losses can offset only future income.
• D)Patrick may elect to offset the income he generated in 2014 with 2015's net operating loss.The remaining net operating loss (if any) can be used to offset future taxable income.
• E)None of the above.

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Definitions:

Career Advancement

The process of moving up in the professional hierarchy or gaining higher positions, responsibilities, and possibly increased salary.

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The ability for individuals or families to move up or down the social ladder within a society, often impacted by factors like education, income, and occupation.

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Individuals who are citizens of the country where a multinational company's subsidiary or operation is located.