A corporation that incurs a net operating loss must carry the loss back to earlier years before it can carry the loss forward.

Question

Quizplus · Accepted Answer

The rules regarding the carryback and carryforward of net operating losses (NOLs) depend on the tax laws in effect for the year in which the loss occurs. As of the Tax Cuts and Jobs Act of 2017 in the United States, NOLs can no longer be carried back to previous years (with limited exceptions), but can be carried forward indefinitely to offset future taxable income.

A Corporation That Incurs a Net Operating Loss Must Carry