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what carryback and carryforward procedures apply to business net operating losses **Answers no need to be...

what carryback and carryforward procedures apply to business net operating losses

**Answers no need to be long. Several sentences will be acceptable**

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Answer #1

Carryback Procedure

The business Net operating Losses can be carried back for 2 years for setoff from past year profits of the assessee.

However, in the cases of Loss by theft or any other casualty, such period shall be extended to 3 years instead of 2 years.

Carryforward Procedure

The business Net operating Losses can be carried forward for 20 years for setoff from any future year profits of the assessee.

Key point

Carry forward and carry back are mutually exclusive to each other. Which means only one of them shall be allowed for a year, either carry forward or carry back. A person can not claim carry forward and carry back simultaneously.

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