1) Co. A incurred a $ 32,000 NOL in 2018. If in 2019 taxable income is $38,000 before NOL compute the 2019 deduction.
Solution -
Net Operation Loss in 2018 = $ 32000
Taxable Income in 2019 = $ 38,000
Carryforward cap of NOL in 2019 is 80% of taxable income in 2019 = 80% of $ 38,000 which is $ 30,400
Based on above information the taxable income in 2019 is as follows
Taxable Income before deduction - $ 38,000
NOL deduction (80%) - $ 30,400
Taxable Income after deduction - $ 7,600
The NOL deduction in 2019 equals to $ 30,400
1) CoA incurred a $ 32.000 NOLIN 2018. If in 201 compute the 2019 deduction Ch...
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