Craig’s Cars, a car dealership founded in 2020, had taxable income and net operating losses as follows (before any NOL deduction): Tax Year Taxable Income/(NOL) 2020 $90,000 2021 ($50,000) 2022 $60,000 2023 $55,000 What is the amount of Craig’s Cars 2022 NOL deduction? Enter as a positive number. Hint: make sure not to confuse the NCL (net capital loss) carryover rules with the NOL (net operating loss) carryover rules.
Craig’s Cars, a car dealership founded in 2020, had taxable income and net operating losses as follows (before any NOL deduction): Tax Year Taxable Income/(NOL) 2020 $90,000 2021 ($50,000) 2022 $60,000 2023 $55,000 What is the amount of Craig’s Cars 2022 NOL deduction? Enter as a positive number. Hint: make sure not to confuse the NCL (net capital loss) carryover rules with the NOL (net operating loss) carryover rules.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Craig’s Cars, a car dealership founded in 2020, had taxable income and net operating losses as follows (before any NOL deduction):
|
Tax Year |
Taxable Income/(NOL) |
|
2020 |
$90,000 |
|
2021 |
($50,000) |
|
2022 |
$60,000 |
|
2023 |
$55,000 |
What is the amount of Craig’s Cars 2022 NOL deduction? Enter as a positive number.
Hint: make sure not to confuse the NCL (net capital loss) carryover rules with the NOL (net operating loss) carryover rules.
answer is not 12,000
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