Question

Question 2 of 6. Which of the following statements is TRUE for tax years 2018, 2019, and 2020? Net operating losses May be carried back five years. Are subject to the 80% of taxable income limit. Are exempt from the election to waive the carryback. Have different rules for farm versus non-farm businesses U Mark for follow up

Answer 1

Q) Which of the following statements is TRUE for tax years 2018, 2019 and 2020 ? Net Operating losses A) May be carried back 5 years B) Are Subject to 80% of taxable income Limit c) Are exempt from the election to waive carryback D) Have different rules for farm Versus non- farm business. e Ans: A) May be carried back 5 years. – TRUE As per Section 2303 of the Coronavirus Aid, Relief and Economie Security Act (CARES Act), Tax Payers can carry back net operating losses, from tax years 2018, 2019 and 2020 for five years- B) Are subject to 80% of taxable income limit. - FALSE As per Section 2303 of the corona virees Aid, Relief and Economic security Act CCARES Act), The limit of 80% of taxable income on Net Operating loss for 3 years lie 2018, 2019,2020 was suspended. © Are exempt from the election to waive carryback, A taxpaper taxpayer have an option to waive the carry back period. So this statement is FALSG. Have different rules for farm versus non farm - FALSE per CARES ACT, There are no different reeles for farm and non-farm business. Hence, The Answer is 'Air May be carried back 5 years.