Patrick had a business net operating loss of $70,000 in 2018. Patrick’s business generated significant taxable profits in 2016 and in 2017. Which of the following is true?

Patrick may elect to offset the income he generated in 2017 with 2018’s net operating loss. The remaining net operating loss (if any) can be used to offset future taxable income.

	a.	Patrick may offset the income he generated in 2016 and 2017 with 2018’s net operating loss by carrying the net operating loss back to each of those tax years. The remaining net operating loss (if any) can be carried forward and used to offset future taxable income.
	b.	Patrick may use the net operating loss to offset income from any year he chooses.
	c.	Net operating losses can offset 80% of the income in future years.
	d.	Patrick may elect to offset the income he generated in 2017 with 2018’s net operating loss. The remaining net operating loss (if any) can be used to offset future taxable income.
	e.	None of the above.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The cor... View the full answer