A Large Corporation Had a Net Long-Term Capital Loss in 2018

question 50

Multiple Choice

A large corporation had a net long-term capital loss in 2018 and net operating loss in 2018. What are the earliest year(s) to which these losses can be carried?

• A) 2013 for both
• B) 2019 for both
• C) 2015 for the capital loss; 2013 for the NOL
• D) 2015 for the capital loss; 2019 (or the first subsequent year with net income) for the NOL

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Definitions:

Income Tax Withholdings

Taxes an employer deducts from employees' wages and pays directly to the government as a part of employees' income tax obligations.

IRS

The Internal Revenue Service, a U.S. government agency responsible for the collection of taxes and enforcement of tax laws.

Estimated Payments

Estimated Payments are periodic prepayments of taxes on income that is not subject to withholding, such as self-employment income, interest, and dividends.

Subject to Withholding

Income that is subject to tax withholding by the payer, which includes wages, certain types of gambling winnings, and other payments.