A Taxpayer Incurs a Net Operating Loss in the Current

question 45

Multiple Choice

A taxpayer incurs a net operating loss in the current year.With respect to the application of the NOL

• A)the taxpayer will carry back the NOL three years first,then carry forward any balance for five years.
• B)the taxpayer must carry forward the loss and has up to 20 years to use it.
• C)the taxpayer can carry forward the loss indefinitely until there is sufficient taxable income to use it up.
• D)the taxpayer will first carry back the NOL for two years,then carry forward the balance for a period of 20 years,or the taxpayer can elect to only carry forward the loss for the 20-year allowable period.

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Definitions:

Structural Support

The elements or components in construction or architecture that offer the necessary strength and stability to a building or structure.

Presynaptic Neuron

A neuron that sends a signal to a neighboring neuron across a synapse, typically releasing neurotransmitters.

Neurotransmitter

Chemicals released by neurons that transmit signals across a synapse from one neuron to another, playing key roles in shaping everyday functions and behaviors.

Postsynaptic Neuron

The neuron that receives a signal (neurotransmitter) from another neuron at a synapse.