Q: Assume tax year-2012
Net Operating Losses
Assume the subsequent facts:
2007 taxable income (modified) $19,000
2008 net operating loss ($24,000)
2009 taxable income (modified) $24,000
2010 taxable income (modified) $36,000
2011 net operating loss ($30,000)
2012 net operating loss ($34,000)
Also assume:
1) That the taxpayer has constantly elected to carryback the total operating losses as incurred and elected the "two-year" carryback provision.
2) There was no taxable income in this tax years prior to 2007.
Required:
a) To what years will the 2008,2011 and 2012 net operating losses be carried back?
b) After applying the total operating losses for 2008, 2011 and 2012 to prior years ( if and where permitted), what amount, if any, is required as a net operating loss to be carried forward to future years?