Indicate whether the following statements are true or false by circling the appropriate letter. T F 1.

Indicate whether the following statements are true or false by circling the appropriate letter.

Transcribed Image Text:

T F 1. NOL deductions are first carried back 3 years and then forward T F T F T F T F 15 years. 2. The itemized deduction for home mortgage interest can generate an NOL for an individual taxpayer. 3. The purpose of the NOL provision in the tax law is to alleviate some of the inequities caused by the progressive tax rate structure. 4. The election not to carry back an NOL deduction is irrevocable. 5. When taxpayers have an NOL deduction, they can use it any year they choose, as long as the tax year is within the prescribed deduction period.