The year in which the ownership shift occurs for a corporation, the NOL carryforward is limited not only by the § 382 annual limitation, but also by the percentage of the year remaining.

Question

Quizplus · Accepted Answer

This is true. When there is a shift in ownership for a corporation, the NOL carryforward is limited not only by the § 382 annual limitation, but also by the percentage of the year remaining. This means that if the ownership shift occurs in the middle of the year, the NOL carryforward limit will be based on the § 382 annual limitation as well as the percentage of the year that remains after the ownership shift.

The Year in Which the Ownership Shift Occurs for a Corporation