Discussion:NOL carryforward
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(Difference between revisions)
| Revision as of 04:27, 4 February 2009 Taxea (Talk | contribs) (Did the transfer) ← Previous diff |
Revision as of 08:44, 4 February 2009 Taxtamer (Talk | contribs) (I don't see how) Next diff → |
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| {{ForumReplyPost|UserID=Taxea|Date=4 February 2009|Text=Did the transfer of this property wipe out her basis? If so, I would say no continuing basis, no NOL. taxea}} | {{ForumReplyPost|UserID=Taxea|Date=4 February 2009|Text=Did the transfer of this property wipe out her basis? If so, I would say no continuing basis, no NOL. taxea}} | ||
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| + | {{ForumReplyPost|UserID=Taxtamer|Date=4 February 2009|Text=I don't see how gifting away some property will cause her to lose her NOL. The NOL was generated, presumably, by the excess of annual expenses over annual income from operating the property. There's nothing I'm aware of that says you can't use an NOL simply because there is no basis left in the assets which were used to generate it. Otherwise people who've had massive business losses would be barred from using any NOL carryovers once those business assets were sold or repo'd. Bottom line: she owned the property when the NOL was generated, she gets to use the NOL carryforward.}} | ||
Revision as of 08:44, 4 February 2009
Discussion Forum Index --> Advanced Tax Questions --> NOL carryforward
Discussion Forum Index --> Tax Questions --> NOL carryforward
| 3 February 2009 | |
| Hello,
My client gifted, to her daughter, a 3plex in Florida that she has owned for about 10 years. She accumulated an NOL of over $40,000. Does she get to continue using the NOL in the future (opted out of carryback) years on her return or does it end with the gift? Thank you for your help. sadonald, EA | |
| 4 February 2009 | |
| Did the transfer of this property wipe out her basis? If so, I would say no continuing basis, no NOL. taxea | |
| 4 February 2009 | |
| I don't see how gifting away some property will cause her to lose her NOL. The NOL was generated, presumably, by the excess of annual expenses over annual income from operating the property. There's nothing I'm aware of that says you can't use an NOL simply because there is no basis left in the assets which were used to generate it. Otherwise people who've had massive business losses would be barred from using any NOL carryovers once those business assets were sold or repo'd. Bottom line: she owned the property when the NOL was generated, she gets to use the NOL carryforward. | |
