If a taxpayer has an NOL in 2013 of $20,000,of which $8,000 is attributable to a theft of rental use property,the taxpayer may:

Question

Quizplus · Accepted Answer

The portion of the NOL attributable to the theft of rental property (in this case, $8,000) is considered a "section 165 loss" and can be carried back up to 3 years. The remainder of the NOL ($12,000) can be carried back up to 2 years. So, the best choice would be to carry $8,000 back 3 years and the remaining $12,000 back 2 years, for a total carryback period of 5 years.

If a Taxpayer Has an NOL in 2013 of $20,000,of