CAF-2 · Chapter 11 · Question 15 of 15
A taxpayer sustains a general business loss in Tax Year 2020. Up to which tax year can this loss be carried forward to be set off against future business income?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) Tax Year 2026
Explanation
Normal business losses can be carried forward up to six (6) tax years immediately succeeding the tax year in which the loss was first computed. Thus, a loss in 2020 can be carried forward up to Tax Year 2026.
More Losses, Deductible Allowances, Tax Credits and Exemptions MCQs
- Q2During the tax year, Mr. A suffered a loss of Rs. 400,000 in a speculation business and earned a profit of Rs. 1,000,000 from a normal…
- Q3ABC Ltd has an unabsorbed tax depreciation loss brought forward from the previous year amounting to Rs. 20 million. Its current year's…
- Q4XYZ Associates is an Association of Persons (AOP). During the tax year, the AOP incurred a business loss of Rs. 1 million. How will this…
- Q5When computing a person's taxable income, which of the following deductions or losses must be taken into account LAST?
- Q6Mr. Y has a taxable income of Rs. 1,400,000. He paid tuition fees of Rs. 500,000 for his three children during the tax year. What is his…