ExpertMedium1 markMultiple Choice
CPA · Question 41 · Area 4: Entity Taxation
A C Corporation has a Net Operating Loss (NOL) carryforward of 0,000 from Year 2 arising after the TCJA. In Year 3, the corporation has taxable income of 0,000. What is the maximum NOL deduction allowed in Year 3?
A C Corporation has a Net Operating Loss (NOL) carryforward of 0,000 from Year 2 arising after the TCJA. In Year 3, the corporation has taxable income of 0,000. What is the maximum NOL deduction allowed in Year 3?
Answer options:
A.
0,000
B.
0,000
C.
0,000
D.
0
How to approach this question
Post-2017 NOL Rule: Carryforward indefinitely, no carryback, limited to 80% of Taxable Income.
Full Answer
B.0,000✓ Correct
0,000
Under current tax law (TCJA), NOL deductions are limited to 80% of taxable income for losses arising in tax years beginning after 2017.
Common mistakes
Deducting the full NOL amount up to 100% of income.
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