Corporate Tax Question:
When calculating Charitable Contributions and Dividend Received Deduction for corporations, I understand that you first compute Taxable Income without NOL carry back and Capital Loss Carry Back. What about Carry Forwards? From what I understand, DRD must EXCLUDE any NOL before calculating them.
Example:
It's 2015 and Taxable Income is $50,000 ($5,000 of which is Capital Gain). Let's say last year there is a Capital Loss carry forward of $20,000 and and NOL carry forward of $10,000. So would we net out the $5,000 capital gain and then further reduce the amount by $10,000 for a total taxable income of $35,000.
So now Charity can be 10% of $35,000 BUT the DRD would be based off of $45,000 or the Dividend (whichever lower)?
Thank you