[MOcpa2015]

Can someone clarify Net Operating Losses for me? I’ve seen it in a lot of review questions, but don’t see it in any of my notes anywhere and I just listed to the Ninja Audio for individual tax and heard Jeff say that the carry back was 2 years and carry forward is 20 years. Is that just for individuals?

How does it work for individuals, partnerships, S corps, C corps, etc?

Thanks in advance!

Using CPAExcel + Wiley Test Bank

FAR - 76 8/5/2014
AUD - 84 10/11/2014
REG - 83 01/02/2015 failed once on 11/26/15 w/ a 72
BEC - 79 05/30/15

[Anonymous]

NOL can be carried back 2 years and forward 20 for both individuals and c-corps. C-corps can elect to forgo the carryback period and only carry it forward. For s-corps and p-ships, since the income flows to the partners there is no entity level tax, so no NOL would exist.

[MOcpa2015]

Ah, yeah that makes sense for the S corps and partnerships.

Thanks for clearing that up.

Using CPAExcel + Wiley Test Bank

FAR - 76 8/5/2014
AUD - 84 10/11/2014
REG - 83 01/02/2015 failed once on 11/26/15 w/ a 72
BEC - 79 05/30/15

[Author]

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