Discussion:NOL Carryforward

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Revision as of 13:37, 22 October 2008
Kevinh5 (Talk | contribs)
(Cporter, you sti)
← Previous diff		 Revision as of 14:23, 22 October 2008
Cporter1 (Talk | contribs)
(The whole 05 NOL)
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There was a year in there somewhere when NOLs were carried back more than 2 years. Better check.}} There was a year in there somewhere when NOLs were carried back more than 2 years. Better check.}}
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 +{{ForumReplyPost|UserID=Cporter1|Date=22 October 2008|Text=The whole 05 NOL would be used by 2003. Do I actually need to prepare a 1040X for 2003 to should how much NOL is used by 2003 even though it won't generate any refund? THANKS!}}

Revision as of 14:23, 22 October 2008

Discussion Forum Index --> Advanced Tax Questions --> NOL Carryforward
Discussion Forum Index --> Tax Questions --> NOL Carryforward

Cporter1 (talk|edits) said:

22 October 2008
I am preparing 04 - 07 1040's for a client with schedule C. He has a NOL in 05 and 06. I understand the time is past to elect to forego the carryback for both of those NOL's (172(b)(3)). The 05 NOL will then need to be carried back to 03 where it can be used but where no refund can be generated (so I am not planning on amending the 03). The 06 NOL will need to be carried back to 04, where it cannot be fully used, then to 05, where it cannot be fully used, then to 07 where it can be fully used. I assume I can put it on the original returns seeing as they have not yet been filed.

Please let me know if my thinking is correct on this. THANKS!!

Taxea (talk|edits) said:

22 October 2008
Why carry back at all? Why not just carry forward? taxea

Kevinh5 (talk|edits) said:

22 October 2008
because it is too late to elect forward for 05 and 06, Taxea.

Kevinh5 (talk|edits) said:

22 October 2008
Cporter, you still need to compute how much NOL is used by 03 even if it doesn't generate a refund.

There was a year in there somewhere when NOLs were carried back more than 2 years. Better check.

Cporter1 (talk|edits) said:

22 October 2008
The whole 05 NOL would be used by 2003. Do I actually need to prepare a 1040X for 2003 to should how much NOL is used by 2003 even though it won't generate any refund? THANKS!
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