A corporation generates a $200,000 net operating loss in 2018. In 2019 its taxable income from 2019 activities is $220,000. The corporation will be allowed an NOL deduction of

Question

Quizplus · Accepted Answer

Under the Tax Cuts and Jobs Act, for NOLs arising in tax years beginning after December 31, 2017, the deduction is limited to 80% of taxable income. Therefore, the NOL deduction for 2019 is 80% of $220,000, which is $176,000.

A Corporation Generates a $200,000 Net Operating Loss in 2018