Bingo Corporation incurred a net operating loss in 2016. If Bingo carries the loss back, it must first carry the loss back to offset its 2015 taxable income and then carry any remaining loss back to offset its 2014 taxable income.
The NOL offsets the income in the second previous year (2014) before it offsets income in the first previous year (2015).

Question

Quizplus · Accepted Answer

Under the tax rules applicable to 2016, a net operating loss (NOL) is first carried back to the first preceding tax year (2015) before any remaining loss is carried back to the second preceding tax year (2014).

Bingo Corporation Incurred a Net Operating Loss in 2016