Bolton Inc., a calendar year taxpayer, generated a $296,400 net operating loss this year. Bolton can carry the loss back five years and forward 20 years for tax purposes.

Question

Quizplus · Accepted Answer

Under the Tax Cuts and Jobs Act of 2017, for losses arising in tax years beginning after December 31, 2017, the carryback of net operating losses (NOLs) is generally eliminated, and NOLs can be carried forward indefinitely. The law allows for an 80% limitation on taxable income for losses carried to tax years beginning after December 31, 2020.