Which of the Following Statements Regarding the Tax Treatment of Start-Up

question 79

Multiple Choice

Which of the following statements regarding the tax treatment of start-up losses is false?

• A) Start-up losses of a business organized as a C corporation create NOL carryforwards, deductible in future years when the business generates a profit.
• B) Start-up losses of a business organized as a partnership are deductible by the partners, potentially generating immediate tax savings.
• C) Start-up losses of a business organized as an S corporation create NOL carryforwards, deductible in future years when the business generates a profit.
• D) Start-up losses of a business organized as an S corporation are deductible by the shareholders, potentially generating immediate tax savings.

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Definitions:

Storage Classes

Specifications in programming languages like C and C++ that determine the lifetime, visibility, and memory location of variables.

Auto

A keyword in the C and C++ programming languages that was originally used to declare automatic variables, now repurposed in C++11 to infer the type of the variable from its initializer.

Register

A small, fast storage location within a computer's CPU where specific types of instructions are stored and processed.