The year in which the ownership change occurs for a corporation, the NOL carryforward is limited not only by the § 382 annual limitation, but also by the percentage of the year remaining.

Question

Quizplus · Accepted Answer

When a corporation undergoes an ownership change, the NOL carryforward is subject to a § 382 annual limitation. However, in the year of the ownership change, the NOL carryforward is also limited by the percentage of the year remaining after the ownership change. This is known as the § 382 limitation percentage. So the statement is true.

The Year in Which the Ownership Change Occurs for a Corporation