For Tax Years Ending After 2017, Which of the Following

question 131

Multiple Choice

For tax years ending after 2017, which of the following statements is incorrect with respect to the treatment of a net operating loss by a calendar year C corporation?

• A) The deduction for any carryover year of the NOL is limited to 80% of taxable income (determined without regard to the NOL deduction).
• B) A corporation may claim a dividends received deduction in computing an NOL.
• C) An NOL is generally carried back 2 years and forward 20 years.
• D) Unlike individuals, corporations do not adjust their NOLs for net capital losses or nonbusiness deductions.
• E) None of these.

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Definitions:

Anonymity

The condition of being anonymous, where an individual's identity is not known.

Interviewer

A person who asks questions, often for the purposes of gathering information, assessing qualifications, or conducting research.

Positive Correlation

A relationship between two variables where both variables move in the same direction.

Average Income

A measure of the central tendency of income distribution of a population, calculated by dividing the total income of the population by the number of people in that population.