Opinion ID: 2967422
Heading Depth: 4
Heading Rank: 1

Heading: product liability, or

Text: (ii) expenses incurred in the investigation or settlement of, or opposition to, claims against the taxpayer on account of product liability. 26 U.S.C. § 172(j)(1). 5 ried backward or forward for up to ten years, rather than the threeyear period that is generally available for loss deductions. See 26 U.S.C. § 172(b)(1)(A), (I) (defining carryover and carryback time periods).7 7 Because on an individual tax return, a taxpayer with positive taxable income has no net operating loss, a corollary is that a taxpayer with positive taxable income must have zeroproduct liability loss, notwithstanding the amount of its product liability expenses. This is true because the taxpayer must have a net operating loss before any of its product liability expenses may be classified as product liability loss.