Question

A loss incurred by a corporation
a.Must be carried forward unless the company has had 2 loss years in a row.
b.Can be carried back 2 years, then carried forward up to 20 years following the loss.
c.Can be carried back 5 years and forward 3 years.
d.Cannot be used to reduce taxes in other years except with special permission from the IRS.
e.Can be carried back 3 years or forward 10 years, whichever is more advantageous to the firm.

Answer 1

A loss incurred by a corporation (b) Can be carried back 2 years, then carried forward up to 20 years following the loss.

Explanation:

The Tax Cuts and Jobs Act (TCJA) has removed the 2 year carry back provision, and now the carry back provision has been  extended to 20 year c, and this act has also limited carry forwards to 80% of net income in any future year.