Discussion:NOL for a Schedule C /1040 filer
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Discussion Forum Index --> Tax Questions --> NOL for a Schedule C /1040 filer
| 11 May 2007 | |
| I have another client who has not filed taxes for the past 3 or 4 years. I am just now working on 2006 and 2005. Will do the prior years after these two are completed. Client has a NOL in 2006 and has a small profit in 2005. Do I have to complete form 1045 to claim the loss for 2005? I don't know what kind of profit or loss client will have until I get into years 2004 and 2003. At this point, the profit in 2005 is minimal, but would save the client having to pay approx $611 in taxes. Any advice? Thanks, | |
Michaelstar (talk|edits) said: | 11 May 2007 |
| First of all, at this point the 2006 t/r is NOT due until 10/15. So no matter what happened in 2006 you have plenty of time to prepare the 2003, 2004 and 2005.
Second - you should be working on 2003 first then go to 2004 etc.... You may find that there are items in 2003 that might carry to 2004 etc - EXCEPT - your 2003-2005 t/r's are deliquent and you can not make any timely elections. Ya - schedule D, investment interest c/f etc..... If all I could recapture is $611 on an NOL c/b - I would elect to carry it forward - to carry it back would cost the client more than 1/2 the $611 in fees alone - not worth the time or effort. | |
Death&Taxes (talk|edits) said: | 11 May 2007 |
| Any NOL would first be applied against 2004, would it not? What does the song say, 'let's start at the very beginning, a very good place to start' or something like that. | |
| 11 May 2007 | |
| I agree about starting at the beginning, but not sure where the beginning is. Husband passed away some time ago and she took over. Why she hasn't filed returns, I have no idea. She is now considering switching to an S Corp and I believe the bank wanted the most recent information. | |
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