NOL carryforwards from C years can be used in an S corporation year against ordinary income.

Question

Quizplus · Accepted Answer

NOL (Net Operating Loss) carryforwards from years in which the corporation was taxed as a C corporation cannot be used in years after the corporation has elected to be taxed as an S corporation. S corporations pass their income, deductions, and credits through to their shareholders, and losses are generally only deductible to the extent of the shareholder's basis in the S corporation.

NOL Carryforwards from C Years Can Be Used in an S