A loss incurred by a corporation:

a. Must be carried forward unless the company has had 2 loss years in a row.

b. It can be carried back 2 years, then carried forward up to 20 years following the loss.

c. It can be carried back 5 years and forward 3 years.

d. It cannot be used to reduce taxes in other years except with special permission from the IRS.

e. It can be carried back 3 years or forward 10 years, whichever is more advantageous to them.

Question

Business

Kolby Murphy

22 December, 20:26

A loss incurred by a corporation:

a. Must be carried forward unless the company has had 2 loss years in a row.

b. It can be carried back 2 years, then carried forward up to 20 years following the loss.

c. It can be carried back 5 years and forward 3 years.

d. It cannot be used to reduce taxes in other years except with special permission from the IRS.

e. It can be carried back 3 years or forward 10 years, whichever is more advantageous to them.

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Answers (1)

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Cher · Answer 1

A loss incurred by a corporation can be carried back 2 years, then carried forward up to 20 years following the loss - option B.

Explanation:

A loss incurred by a corporation can be carried back 2 years, then carried forward up to 20 years following the loss.

Meanwhile, the net operating loss incurred for tax years ending after 2017 can only be carried forward, it can no longer be carried backward.

Therefore, option B is the correct answer choice.