EXHIBIT 16-6 Net Operating Loss Carryback and Carryover Summary Tax Year NOL Originated Carrybacks Carrybacks Back two years. *Can offset 100% of taxable income before the Beginning before 2018 Forward 20 years. Can offset 100% of taxable income before the NOL deduction in carryback years. NOL deduction Carried forward indefinitely. Can offset up to 100% of taxable Back five years. *Can offset up to 100% of taxable income before 2021. In tax years beginning after 2020. can offset up to 80 income before the NOL deduction in tax years beginning before Beginning after 2017 and before 2021 the NOL deduction in carryback years. percent of taxable income after deducting NOL carryovers from NOLs originating in tax years beginning before 2018. Carried forward indefinitely. Can offset up to 80 percent of Beginning after 2020 Not allowed taxable income remaining after deducting NOL carryovers from NOLs originating in tax years beginning before 2018 *A corporation can elect to forgo the NOL carryback and simply carry the NOL forward to future years. Also, if a corporation carries back a NOL, it must carry it back to the earliest year first (i.e., two years prior or five years prior, depending on the year the NOL originated). Required information [The following information applies to the questions displayed below.] Riverbend Incorporated received a $307,500 dividend from stock it held in Hobble Corporation. Riverbend's taxable income is $2,620,000 before deducting the dividends-received deduction (DRD), a $54,000 NOL carryover, and a $177,000 charitable contribution. Use Exhibit 16-6. (Round your tax rates to 1 decimal place. Leave no answer blank. Enter zero if applicable.) a. What is Riverbend's deductible DRD assuming it owns 10 percent of Hobble Corporation? DRD ! Required information [The following information applies to the questions displayed below.] Riverbend Incorporated received a $307,500 dividend from stock it held in Hobble Corporation. Riverbend's taxable income is $2,620,000 before deducting the dividends-received deduction (DRD), a $54,000 NOL carryover, and a $177,000 charitable contribution. Use Exhibit 16-6. (Round your tax rates to 1 decimal place. Leave no answer blank. Enter zero if applicable.) b. Assuming the facts in part (a), what is Riverbend's marginal tax rate on the dividend? Marginal tax rate Required information [The following information applies to the questions displayed below.] Riverbend Incorporated received a $307,500 dividend from stock it held in Hobble Corporation. Riverbend's taxable income is $2,620,000 before deducting the dividends-received deduction (DRD), a $54,000 NOL carryover, and a $177,000 charitable contribution. Use Exhibit 16-6. (Round your tax rates to 1 decimal place. Leave no answer blank. Enter zero if applicable.) c. What is Riverbend's DRD assuming it owns 50 percent of Hobble Corporation? DRD Required information [The following information applies to the questions displayed below.] Riverbend Incorporated received a $307,500 dividend from stock it held in Hobble Corporation. Riverbend's taxable income is $2,620,000 before deducting the dividends-received deduction (DRD), a $54,000 NOL carryover, and a $177,000 charitable contribution. Use Exhibit 16-6. (Round your tax rates to 1 decimal place. Leave no answer blank. Enter zero if applicable.) d. Assuming the facts in part (c), what is Riverbend's marginal tax rate on the dividend? Marginal tax rate
