Due to an unusual event,a taxpayer has a large loss in the current year,resulting in an NOL.The taxpayer expects next year's taxable income to return to the same approximate amount he reported in last few years,however he expects his income tax rate to decrease due to the recent election results.The taxpayer should elect to forego the carryback period.

Question

Quizplus · Accepted Answer

If a taxpayer expects a lower marginal tax rate in the year following the NOL,he will prefer to carry back the loss.

Due to an Unusual Event,a Taxpayer Has a Large Loss