Due to an Unusual Event,a Taxpayer Has a Large Loss

question 113

True/False

Due to an unusual event,a taxpayer has a large loss in the current year,resulting in an NOL.The taxpayer expects next year's taxable income to return to the same approximate amount he reported in last few years,however he expects his income tax rate to decrease due to the recent election results.The taxpayer should elect to forego the carryback period.

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Definitions:

Rational-emotive Therapy

A form of cognitive-behavioral therapy developed by Albert Ellis that focuses on identifying and changing irrational beliefs that cause emotional and behavioral issues.

Cognitive Therapy

A type of psychotherapy that aims to change negative patterns of thinking, helping patients to deal with problems in a more positive way.

Sweeping Negative Generalizations

Broad, all-encompassing statements that attribute negative characteristics to an entire group without exceptions.

Secure Place

A concept referring to an environment or setting where one feels safe, protected, and free from harm or danger.