If a corporation recognizes an operating loss carryforward in the year of the loss, the corporation will deduct the tax benefit from its operating loss.

Question

Quizplus · Accepted Answer

An operating loss carryforward is a tax deduction that a corporation can use to reduce its taxable income in future years. The corporation will not deduct the tax benefit from its operating loss in the year of the loss.

If a Corporation Recognizes an Operating Loss Carryforward in the Year