A large corporation had a net long-term capital loss in 2016 and net operating loss in 2016.What are the earliest year(s)to which these losses can be carried?

Question

Quizplus · Accepted Answer

For net long-term capital losses, the earliest year to which they can be carried is the third year prior to the loss year (i.e., 2013 for losses incurred in 2016). For net operating losses, they can be carried back two years prior to the loss year (i.e., 2014 for losses incurred in 2016). Therefore, the earliest year for the capital loss is 2013 and for the NOL is 2014, making D the correct answer.

A Large Corporation Had a Net Long-Term Capital Loss in 2016