Net Operating Losses
Assume the following facts:
2007 taxable income (modified) $19,000
2008 net operating loss ($24,000)
2009 taxable income (modified) $24,000
20010 taxable income (modified) $36,000
20011 net operating loss ($30,000)
2012 net operating loss ($34,000)
Also assume:
1) That the taxpayer has consistently elected to carryback the net operating losses as incurred and elected the "two-year" carryback provision.
2) There was no taxable income in tax years prior to 2005.
Required:
a) To what years can the 2008,2011 and 2012 net operating losses be carried back? (show amount of carryback and years involved)
b) After applying the net operating losses for 2008, 2011 and 2012 to prior years ( if and where permitted), what amount, if any, is available as a net operating loss to be carried forward to future years?