Question
In 2020 Ace corporation reports gross income of $200,000 ($150,000 of profits from its operations and $50,000 in dividends from less-than-20%-owned domestic corporation) and $230,000
In 2020 Ace corporation reports gross income of $200,000 ($150,000 of profits from its operations and $50,000 in dividends from less-than-20%-owned domestic corporation) and $230,000 of operating expenses.
a. What is Ace's NOL for 2020?
b. Assume that Ace expects 2021's taxable income to be $20,000 and 2022's taxable income to $100,000, both before any NOL deduction in the carryover year. What NOL deductions can Ace expect to claim in 2021 and 2022?
c. How would your answer to Part b change if , in addition to the 2020 NOL, Ace also had a $5000 NOL carry over from a loss before 2018?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
