Karen has a net operating loss in 2015. If she does not make any special elections, what is the first year to which Karen can carry the net operating loss?

Question

Karen has a net operating loss in 2015. If she does not make any special elections, what is the first year to which Karen can carry the net operating loss? ​

Quizplus · Accepted Answer

A net operating loss (NOL) can be carried back two years and carried forward up to 20 years. Therefore, Karen can carry the NOL back to 2013, then 2014, and if any NOL remains, she can carry it forward up to 20 years from 2015. The earliest year she can carry the NOL to is 2013.

Karen Has a Net Operating Loss in 2015