Identify which of the following statements is true.
A)Any amount of net business interest disallowed due to limitation may be carried over indefinitely.
B)If a corporation accrues an obligation to pay compensation, the corporation must make the payment by year-end to be able to deduct during the current year.
C)Corporations can deduct up to $10,000 in capital losses per year.
D)Net business interest is limited to 50% of adjusted taxable income.

Question

Quizplus · Accepted Answer

Net business interest disallowed due to limitation can indeed be carried over indefinitely, allowing businesses to potentially deduct this interest in future tax years when they may have more taxable income or when the limitations may not apply.

Identify Which of the Following Statements Is True