Addendum.In the October 2007 Tax Practice & Procedures item "Advantages of a C Corporation" (p. 617),Jay Starkman suggested a tax planning Tax planning Devising strategies throughout the year in order to minimize tax liability, for example, by choosing a tax filing status that is most beneficial to the taxpayer. technique using net operating loss carrybacks Net operating loss carrybacks The application of losses to offset earnings in previous years. and carryforwards and cautioned that there is no benefit to a personal service corporation in making a Sec. 444 election to use a fiscal year. James E. Thompson, a Rockville, Maryland, CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. , has pointed out a distinct disadvantage: Under Sec. 280H(e), a net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. carryback is not allowed while a Sec. 444 election is in effect. |
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