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Practice CPA®CPA TCP Practice Exam 5Question 67

Medium1 markMultiple Choice

Area I: Individual Compliance and PlanningTCPIndividual TaxNOL

CPA · Question 67 · Area I: Individual Compliance and Planning

A taxpayer has a Net Operating Loss (NOL) from a farming business in Year 1. What is the carryback period?

Answer options:

A.

No carryback allowed.

B.

2 Years

C.

5 Years

D.

3 Years

How to approach this question

General NOL: Indefinite forward only. Farming Exception: 2 Year Carryback allowed.

Full Answer

B.2 Years✓ Correct

IRC §172(b)(1)(B). Farming losses have a special 2-year carryback period.

Common mistakes

Applying the general 'no carryback' rule.

Question 66 All questions Question 68

Practice the full CPA TCP Practice Exam 5

68 questions · hints · full answers · grading

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