Question 11 Question 12 A. Bob has a 2015 NOL of $45,000. In 2013 and 2014, he w

Question

Question 11

Question 12

A. Bob has a 2015 NOL of $45,000. In 2013 and 2014, he was in the 28% tax bracket and received a substantial refund of $8,000 where the NOL was fully used and there was no carry over. However, if Bob makes the election and carries forward, he anticipates being in the 15% tax bracket in 2016 through 2020, receiving an estimated $6,000 total refund. Bob wants to receive the best advantage possible when deducting his NOL.  

I do not have any other additional infromation.

In which of the following situations would Sam elect to waive the NOL carryback? Question 11 of 15 In which of the following situations would Sam elect to waive the NOL carryback? sam has a 2015 NOL of S20.000 In 2013 and 2014. he was in the 10% tax bracket with a total refund trom car beck of S 1.900, where the NOL was fully used with no carry over. However, if he makes the election and carries forward he expects to be in the 25% tax bracket in 2018, receiving an estimated $4,500 refund where the NOL will be fuly used up and no carryover. Sam wants to receive the best advantage possible when deducting his NOL sam has 2015 NOL of 520 000 In 2013 and 2014. he was in the 15% ta b acket and ould receive a S2.000 refund if he carries back the NOL Sam anticipates being in the 28% tax bracket in 2016 and would receive a S4,DDO refund if he carries the NOL forward. However, regardless of tax savings, Sam needs cash to pay business debt obligations to avcid default Sam has a 2015 NOL of $50 000 In 2013 and 2014 he was in the 25% tax bracket and recei ed a substantial refund of S7 000 where the NOL was fully used and no can aver However if he makes the election and cames forward he e pects to be in the 10% tax brackef in 2018 through 2020, reteiving an estimated S2,000 total refund. Sam wants to receive the best advantage possible when deducting his NOL Som has a 2015 NOL o $40,000. In 2013 and 2014, he was 'n the 15% tax bracket. He expects to be in the 25% tax rocket in 2016 However, regardless of so ngs. Sam needs cash n hand o purchase business inventory o keep the doors open Mark for follow up Question 12 of 15 In which of the following situations would Bob elect to waive the NOL carryback? Bob has 2015 N L o $45,000. In 2013 and 2014, he was r tho 28% a bracket and recen d substan al refund o S8.000 where the NOL wos fully used and there os no carry over. However, if Bob makes the election and carnes forward. he ontic pates being in the 15% tax brocket in 2016 through 2020, recomg n estimated S6.000 total refund Bob wants to receive the best dvantage possible when deducting his NOL. Bob has 2015 NOL of S65,000. In 2013 and 2014, he was the 25% a bracket nd ecer ed substantial refund of S10 000 He e pects to be 'n he 10% tax bracket om 2016 through 2020 r which he would receive a re und of S5.500. Bob wants to ece e te best advantage possible when deducting his NOL Bob has a 2015 NOL o S30 000. In 2013 and 2014, he was the 10% a bracket If Bob co es back his N L he wil zero out his 2013 ond 2014 AGI, which n turn reduces the earned income a credit he recen ed in 2013 and 2014. However, Bob anticipates being in the 28% tax bracket in 2016, receng an estimated S5.000 retund where the NOL will be fully used up with no carryover. Sam wants to recerve the best advantage poestle when deducting his NOL O Bob has a 2015 N L of S50 000 n 2013 and 2014, he was the 5% a b cket e anticipates being in the 25% ta br eke n 2016. Regardiese of nga he needs cash r hand o either purchsee bu ness e tory pay fixed costs cover business expenses aa to keep the doors open.

Explanation / Answer

11) A) In this situation Sam would elect to waive the NOL carryback of $1,900 of 2013 and 2014 because if he elects for it, he expects to receive a refund of $4,500 in 2016 where the NOL will be fully used and also he wants to receive the best advantage possible when deducting his NOL.

B) In this situation Sam would not elect to waive the NOL carryback because he needs cash to pay business debt obligations to avoid default.

C) In this situation, Sam had already received the refund of $7,000 now he can not waive the carryback and this decision also results in best advantage for him because if he has elected to waive carryback he would have only received refund of $2,000 instead of $7,000.

D) In this situation he would not elect to waive the NOL carryback because he needs cash in hand to purchase inventory to keep doors open.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.