Why do most companies prefer to use an NOL Carryback instead of an NOL Carryforward when both options are allowed by tax law? (NI - 840) O It allows them to reduce their income tax expense in the current year. O It allows them to reduce their future income tax expense. O It allows them to increase their income tax refund in the current year. O It allows them to increase their future income tax refunds.

Why do most companies prefer to use an NOL Carryback instead of an NOL Carryforward when both options are allowed by tax law? (NI - 840) O It allows them to reduce their income tax expense in the current year. O It allows them to reduce their future income tax expense. O It allows them to increase their income tax refund in the current year. O It allows them to increase their future income tax refunds.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter12: Alternative Minimum Tax

Section: Chapter Questions

Problem 5DQ

See similar textbooks

Similar questions

Which of the following are true about Deferred Tax Liabilities? (check all that apply) In the future, tax rules require bigger expenses than GAAP Initially, tax rules require smaller expenses than GAAP In the future, tax rules require smaller expenses than GAAP They represent an obligation to make higher tax payments in the future Initially, tax rules require bigger expenses than GAAP
1) How can tax on Pfizer's income be negative? Does it mean Pfizer saved that much money or they received that much amount from government in Cash? 2) What is the effective rate of tax for Pfizer? Can it be negative? 3) Give us brief details of what sort of tax benefits and tax expenses impacted FY 2017's Provision/(benefit) for taxes on income?
Which statement is NOT true about the structure of the Earned Income Tax Credit (EITC)? A. EITC payments decrease as earnings increase, but everyone qualifies for some amount. B. At a particular range of income, government reduces EITC payments based on a certain fixed percent of income earned. C. EITC pays a fixed amount at a range of income. D. Up to a threshold, EITC pays a certain fixed percent of wage earned.
Tax rates other than the current tax rate may be used to calculate the deferred income tax amount on the balance sheet if O it is probable that a future tax rate change will occur. O it appears likely that a future tax rate will be greater than the current tax rate. O the future tax rates have been enacted into law. O it appears likely that a future tax rate will be less than the current tax rate.
Please Solve in 15mins I will Thumbs up promise
Which statement is TRUE? If next years' tax rate will go down, companies with more existing deferred tax liabilities than deferred tax assets will have lower income tax expense in the current year If next years' tax rate will go down, companies with more existing deferred tax assets than deferred tax liabilities will have lower income tax expense in the current year If a company does not recognize a deferred tax asset for their current year tax loss, they can never recognize or use this in the future If a company does recognize a deferred tax asset for their current year tax loss, they would only derecognize this in the future if the tax loss is offset with taxable profits. O None of the other options
Please help. Thanks
Which of the following is tax credit or tax deduction or none: A reduction of the income subject to tax A reduction of the total amount a taxpayer owes to the government A reduction of individual income taxes based on last year’s taxes A reduction of corporate taxes based on last year’s profit
4
Which of the following would be a good question to ask before advising a client to move from a Schedule C to S corporation tax treatment? Review Later How does moving to S corp tax treatment impact the ability to pump tons of money into a tax-deferred retirement plan? What really are the net savings, after accounting for all the extra fees attached to operating an S corporation? Is this client likely to actually do the compliance stuff associated with operating an S corporation, or is the "extra red tape" possibly (read: probably) going to become a nightmare for the client?.
Tax Planning (LO 12.7) Select either "True" or "False" for each of the following statements. Item Description Answer a. Decreasing one's tax liability through legal methods is called tax - planning, while illegally reducing taxes is called tax evasion. b. In a "closed" transaction, all tax - significant events have been completed. c. The marginal tax rate is computed as the total tax paid divided by the total income of the taxpayer. d. The marginal tax rate is the most important rate for decision making in tax - planning situations. e. A timing tax - planning technique usually has the objective of deferring the payment of tax until a later year.
Tax rates other than the current tax rate may be used to calculate the deferred income tax amount for financial statement reporting if O it is probable that a future tax rate change will occur. O it appears likely that a future tax rate will be greater than the current tax rate. O it appears likely that a future tax rate will be less than the current tax rate. O the enacted tax rate is expected to apply in future years.