Question 64 of 75 In a NOL carryback year, the NOL is combined with the AGI from

Question

Question 64 of 75 In a NOL carryback year, the NOL is combined with the AGI from the return as originally filed or amended. All of the following itemized deductions are recomputed based on the new AGI EXCEPT Charitable contributions. O Casualty and theft loss deduction. O Miscellaneous itemized deductions subject to the 2%-of-AGI limitation. O Medical expenses. Mark for follow up Question 65 of 75 A taxpayer may elect to waive the carryback period for a NOL by: O Attaching a statement to the return for the carryforward year. O Filing an amendment for the NOL year return.' Attaching an statement to the tax return for the loss year,filed on or before the due date,including extensions. Filing an amendment claiming the election for the carryback year. Mark for follow up

Explanation / Answer

Solution-1: As per IRS notification for form 1045, charitable contributions are not recomputed based on the new AGI. Hence, option (a) is correct and option (b), (c) and (d) are not correct.

Solution-2: As per IRS notification, if a taxpayer elects not to carryback an NOL (net operating losses), he or she needs to attach a statement along with original return to be filed by the due date (including extension) highlighting that he or she is waiving the carryback period under section 172(b)(3). Hence, option (c) is correct and option (a), (b) and (d) are not correct

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