Karen has a net operating loss in 2017.If she does not make any special elections,what is the first year to which Karen can carry the net operating loss?

Question

Karen has a net operating loss in 2017.If she does not make any special elections,what is the first year to which Karen can carry the net operating loss? ​

Quizplus · Accepted Answer

Per Internal Revenue Code Section 172(b)(1)(A), taxpayers with a net operating loss may carry the loss back two years and then forward up to 20 years after the year of the loss. This means Karen can carry the loss back to 2015, but not to any earlier years (e.g. 2014, 2013, 2012) because those years would be more than two years before the year of the loss (i.e. 2017). Therefore, the correct answer is D) 2015.

Karen Has a Net Operating Loss in 2017