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:

Disabled People

Individuals who have physical, mental, intellectual, or sensory impairments which, in interaction with various barriers, may hinder their full and effective participation in society on an equal basis with others.

Early 1900s

The first decade of the 20th century, a period marked by rapid industrialization, technological advancements, and social changes.

Conditions

Circumstances affecting the way people live or work, especially with regard to their safety or well-being.

Deaf Community

A cultural and social group consisting of individuals who are deaf, including those who use sign language as their primary means of communication.