Question

Excess business losses of a noncorporate taxpayer are carried back two tax years and forward 20 years.

a-true
b-false

Answer 1

True or False: Excess business losses of a noncorporate taxpayer are carried back two tax years and forward 20 years.

Step-by-step explanation:

The statement, “Excess business losses of a noncorporate taxpayer are carried back two tax years and forward 20 years”, is false.

According to the tax laws in the United States, business losses of a noncorporate taxpayer can be carried back up to 5 years and carried forward up to 20 years. This means that if a noncorporate taxpayer incurs a loss in a particular year, they can deduct that loss from their income in the previous 5 years or in the next 20 years.