When a Net Operating Loss Is Carried Forward, the Net

question 43

True/False

When a net operating loss is carried forward, the net operating loss can affect the medical expense deduction of that year.

---

Definitions:

Promissory Note

A financial document in which one party promises to pay another party a specified sum of money at a defined future date or on demand.

Payable

Refers to the amount of money that is owed by an individual or organization and is due to be paid.

Shelter Principle

A legal concept in real estate and commerce that protects the rights of a subsequent buyer of property if the immediate seller had legitimate rights to transfer it.

HDC Rights

Rights of a Holder in Due Course, which protect the holder of a negotiable instrument from certain defenses and claims that could invalidate the instrument.