Originally Posted by Sheryllynnj
#1;I got divorced in 2009 and did not know that we had a large NOL carry forward from 2007. It was not on our 2009 tax return.
#2; I saw my ex-husbands tax return for 2012 and the NOL was listed. My ex must have amended the past tax return. What can I do at this point, is it too late to amend my 2007 tax return even though I was not aware of the NOL? Thank you for your help
#1;Correct the nol was c/f by him from 2007 instead of being c/b to his 2012 return. Yo can carry the amount forward for the next 20 years and apply it against any taxable income, which reduces the amount of taxable income in those years. After 20 years, any remaining NOL is cancelled.
#2;As you had a NOL in 2007, you could carry back the NOL to 2005/2006 by amending the 2005/2006 tax return(s). However, you couldn’t this, since the NOL for 2007 isn't up until 4/15/2011, so all is lost. You have 3 years from the date that the 2008 return is filed (including extensions)or 2 years from the time the tax was paid, whichever of such periods expires later to file an amended return to carryback the NOL UNLESS you elected to carry if forward instead of carrying it back.you Cannot carry it forward if not elected on original return , and since you don't amend 05 & 06 you lose it unless you can prove you have a carryover from 05 to 06and from 06 to 08.