M7 NOLs and Capital Loss Limitations

Question 1

5 Items NOT allowed in calculating theCURRENT YEAR NOL

Answer 1

1) Charitable contributions
2) DRD
3) Domestic production activities
4) NOL deduction for NOL carryback or carryover from another year
5) Capital loss CARRYBACK against a net capital gain

Question 2

Carryover rules NOLs

Answer 2

Back 2, forward 20

Question 3

Carryover rules Net CAPITAL Losses

Answer 3

back 3, forward 5

Question 4

Capital losses can only offset

Answer 4

capital gains (can’t be used against operating income)