A large corporation had a net long-term capital loss in 2018 and net operating loss in 2018. What are the earliest year(s) to which these losses can be carried?

Question

Quizplus · Accepted Answer

Net long-term capital losses can be carried forward for up to 5 years and net operating losses can be carried forward for up to 20 years. Therefore, the earliest year for the capital loss would be 2015 (5 years before 2018) and the earliest year for the NOL would be 2019 (or the first subsequent year with net income). Therefore, the correct answer is D.

A Large Corporation Had a Net Long-Term Capital Loss in 2018