Which of the Following Statements Is False Regarding the Tax

question 86

Multiple Choice

Which of the following statements is false regarding the tax benefits from a loss corporation's carryovers that are taken in the current year?

• A)The § 382 yearly limitation is applied first to the credit carryovers and then to the loss carryovers (built-in loss,capital loss,or NOL).
• B)The § 382 yearly limitation determines the maximum benefit that the successor corporation can obtain in one year from all tax credits and loss carryovers for the year.
• C)In addition to the § 382 yearly limitation,a year-of-transfer limitation may also apply.
• D)The IRS can disallow tax benefits carryovers when § 269 applies.
• E)All of the above statements are true.

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Definitions:

Defaults

A failure to fulfill an obligation, especially to repay a loan on time.

Holder in Due Course

A legal term for a person who has acquired a negotiable instrument in good faith and for value, and thus has certain protections.

Uniform Commercial Code

A comprehensive set of laws that governs commercial transactions in the United States, aiming to standardize and simplify the process across state lines.

Requirements

Needs or conditions that must be met or complied with, often specified in a contract or by a product's design.