Due to an Unusual Event,a Taxpayer Has a Large Loss

question 55

True/False

Due to an unusual event,a taxpayer has a large loss in the current year,resulting in an NOL.The taxpayer expects next year's taxable income to return to the same approximate amount he reported in last few years,however he expects his income tax rate to increase after this year's election.The taxpayer should elect to forego the carryback period.

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Definitions:

Prices

The amount of money required to purchase a good or service, serving as a signal for scarcity and demand in the market.

Unemployment

The condition of being jobless and actively seeking employment.

Phillips Curve

An economic concept illustrating an inverse relationship between rates of unemployment and rates of inflation within an economy.

Congress

The legislative branch of the United States federal government, consisting of two houses: the Senate and the House of Representatives.