The net operating loss (NOL) provisions of the Internal Revenue Code
A)Apply only to individuals with wages and itemized deductions.
B)Require the use of a 2-year carryback in all cases.
C)Are primarily designed to provide relief for trade or business losses.
D)Allow the deduction for home mortgage interest to create an NOL.
E)Would not be necessary if tax rates were progressive.

Question

Quizplus · Accepted Answer

The NOL provisions are primarily designed to provide relief for trade or business losses, allowing the business owner to offset taxable income in other years. They do not apply only to individuals with wages and itemized deductions, require the use of a 2-year carryback in all cases, allow the deduction for home mortgage interest to create an NOL, or have anything to do with tax rates being progressive.

The Net Operating Loss (NOL) Provisions of the Internal Revenue