If a Taxpayer Has an NOL in 2012 of $20,000

question 33

Multiple Choice

If a taxpayer has an NOL in 2012 of $20,000, of which $8,000 is attributable to a theft of rental use property, the taxpayer may:

• A)Carry all of the NOL of $20,000 back 5 years.
• B)Carry all of the NOL of $20,000 back 3 years.
• C)Carry $8,000 of the NOL back 3 years and the remainder of the NOL of $12,000 back 2 years.
• D)All of the above.
• E)None of the above.

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Definitions:

Date Of Record

The cut-off date established by a company in order to determine which shareholders are eligible to receive a dividend or distribution.

Preferred Shares

A class of ownership in a corporation that has a higher claim on the company's assets and earnings than common shares, usually with fixed dividends.

Share Capital

The total value of a company's shares of stock that have been issued to shareholders.

Retained Earnings

The portion of net earnings not distributed as dividends to shareholders, but retained by the company to reinvest in its core business or to pay debt.