Explore BrainMass

Explore BrainMass

    Net Operating Losses

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Assume the following facts:
    2007 2008 2009 2010 2011 2012
    Taxable income (loss) $19,000 $(24,000) $24,000 $36,000 $(30,000) $(34,000)

    The taxpayer has elected to carry-back the net operating losses as incurred and elected the "two-year" carry-back provision. There was no taxable income prior to 2007.

    a. To what years can the 2008, 2011 and 2012 net operating losses be carried back?
    b. What amount, if any, is available as a net operating loss to be carried forward?

    © BrainMass Inc. brainmass.com June 4, 2020, 3:59 am ad1c9bdddf

    Solution Preview


    First, treat each loss individually, one at a time. Start with 2008 loss. Go back two years. Nothing in 2006. ...

    Solution Summary

    See Excel for schedule illustrating this process. A reference is given.