Question
Which of the following statements related to loss carry overs is correct? A. When a loss is carried back and applied to a preceding taxation
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Which of the following statements related to loss carry overs is correct?
A.
When a loss is carried back and applied to a preceding taxation year, it will result in a refund of some or all of the taxes paid in the carry back year.
B.
Income tax legislation dictates that a loss carry over should be applied to a preceding taxation year first before carrying the loss forward to apply against taxable income in future years.
C.
When the taxpayer incurs a loss in the current taxation year, it is at their discretion to apply the loss against income in the current year or carry back or carry forward the loss.
D.
When a loss is carried forward, it will result in an immediate refund of estimated taxes to be paid in the carry forward year.
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