[Anonymous]

hi,

for C Corporation taxation, how do we suppose to calculate its NOL?

do we suppos to deduct charitable deduction in order to arrive at NOL?

because as i was studying with my review book, i also got the idea that charitable deduction is NOT allowed when calculating NOL, BUT DRD is allowed when calculating NOL

Pls help.. i’m really confused right now ????

thanks

[melody_pinaycpa]

NOL is basically a negative taxable income; expenses are more than the revenues. If a C Corp has an NOL, they cannot deduct charitable contributions while they could deduct DRD limited to Dividend income * DRD % ONLY and NOT taxable income * DRD %.

FAR - 88
AUD - 86
BEC - 82
REG - 73, 70, 82

FAR (Apr 2015) - 88
AUD (July 2015) - 86
BEC (Oct 2015) - 82
REG - 73, 70, retake Sept 2016

[Author]

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