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?
First, treat each loss individually, one at a time. Start with 2008 loss. Go back two years. Nothing in 2006. ...
See Excel for schedule illustrating this process. A reference is given.