Which of the following statements regarding net operating losses generated in 2020 is true?
A)Corporations can carrythe NOL back two years and forward up to 20 years.
B)A corporation can carry over the NOL indefinitely.
C)A corporation can carrythe NOL back two years and forward indefinitely.
D)When a corporation applies a net operating loss carryover, it reports a favorable, permanent book-tax difference in the amount of the applied carryover.
E)None of these is a true statement.

Question

Quizplus · Accepted Answer

Under the Tax Cuts and Jobs Act (TCJA) of 2017, for losses arising in tax years beginning after December 31, 2017, corporations can carry over the net operating loss (NOL) indefinitely, eliminating the 20-year limitation that existed previously.

Which of the Following Statements Regarding Net Operating Losses Generated