Question 64 of 75.

As with federal law, if the net loss from a sole proprietor's business exceeds total income for the year, the taxpayer may have a net operating loss (NOL). Which of the following statements is TRUE regarding net operating loss?

There are differences between the federal and California treatments of NOLs.

There are no differences between the federal and California treatments of NOLs.

The allowable NOL carryover under California law is the same as the allowable federal carryover.

Do not refigure a NOL carryover for California