Karen was ill for most of the current year. She received tax-free disability income that covered most of her expenses. She paid the deductible expense of owning her home, interest on the mortgage, and property taxes out of this income. Her tax return shows negative taxable income of $25,000. Can this loss be carried back to prior years or carried forward to future years? Why or why not?
The loss of $25,000 will be... View the full answer