Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-30-2015, 05:47 PM
Junior Member
 
Join Date: Jan 2015
Posts: 10
Thumbs down NOL-Can I skip a year?

I have zero tax liability for 2014 without using my NOL. Can I choose to not put in the carryover NOL on line 21 of my 1040 and carry the NOL amount from 2013 to 2015 return?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 01-30-2015, 10:43 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,236
Quote:
Originally Posted by jahh View Post
I have zero tax liability for 2014 without using my NOL. Can I choose to not put in the carryover NOL on line 21 of my 1040 and carry the NOL amount from 2013 to 2015 return?
then you do not fileform 1045.you may 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; the option of waiving your carryback period and using all your losses going forward for up to 20 years. You might do this if your losses in the current year were due to some catastrophic event that's not likely to repeat itself. If you expect your business to thrive next year, you can waive the carryback period and use all your losses going forward. However, after you commit to this decision, you can't change your mind if your business doesn't do as well as you expect.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 01-31-2015, 03:11 PM
Junior Member
 
Join Date: Jan 2015
Posts: 10
Thumbs down Nol

So sorry. I neglected to state that the NOL happened in 2012. I did not fill the "elect to Not carryback" that year. Was told by an accountant that it didn't matter because we had zero tax liability in 2010 & 2011 so I didn't have to go back. After further reading lately not sure if this is true. It seems I could eliminate this whole situation and save more on taxes in the long run by changing the K1 loss from active to passive for 2012.We already have a passive loss for 2011 when in business started the last two months of 2011. The accountant listed us as active in 2012-I think we could probably qualify either way-the business is in Houston and is run by the operating partner-we are 2 of 4 partners that put up the money,we do the analysis of the business.MY New question is can we change 2012 loss to Passive from active.The company is making money going forward and we are comfortable it will continue to do so. Seems to me that is the most efficient way to use loss, if the IRS allows changing the status of the loss. Help.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #4 (permalink)  
Old 01-31-2015, 03:26 PM
Junior Member
 
Join Date: Jan 2015
Posts: 10
Thumbs down 2012 Nol

We did not elect to "not carry back" for our 2012 NOL. An accountant told me that was not an issue as we had "zero tax liability" in 2010 and 2011.After reading more not sure if that is correct.
I think we could use all the 2012 loss if it was changed from active to passive-eliminating the NOL. If was passive for us in 2011.I think we could go either way as we are do not run the business, which is in another state. We are 2 of the 5 partners in the LLC. We do the analysis and check the financials. Will the IRS allow us to change our loss to passive? We would be comfortable with this as the company is turning a profit and we anticipate it will continue to do so.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #5 (permalink)  
Old 02-01-2015, 12:40 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,236
Quote:
Originally Posted by jahh View Post
We did not elect to "not carry back" for our 2012 NOL. An accountant told me that was not an issue as we had "zero tax liability" in 2010 and 2011.After reading more not sure if that is correct.
I think we could use all the 2012 loss if it was changed from active to passive-eliminating the NOL. If was passive for us in 2011.I think we could go either way as we are do not run the business, which is in another state. We are 2 of the 5 partners in the LLC. We do the analysis and check the financials. Will the IRS allow us to change our loss to passive? We would be comfortable with this as the company is turning a profit and we anticipate it will continue to do so.
To apply this exception you must be able to show that the income is from the same activity in which you did not previously materially participate. You can offset the allocable part of your current year tax liability with any prior year unallowed passive activity credits from that activity. The allocable part of your current year tax liability refers to that part of this year's tax liability that is allocable to the current year net income from the former passive activity. This is figured after you reduce your net income from a former passive activity by any prior year unallowed loss from that activity (but not below zero).



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
I need help balancing a small business loss this year and using it in a future positive years so I can qualify for a house this year ryaah2000 Limited Liability Company 3 02-11-2014 06:42 AM
International Marriage This Year, Spouse Not in US Till Next Year krenees Income 3 09-21-2011 05:50 PM
Must you claim loss in current year or can you take in future year? dapert Rental Real-Estate 1 03-27-2011 12:18 PM
Can a couple divorced during the tax year, file joint tax returns for the year? TaxGuru Divorce Tax Issues 0 09-29-2009 08:32 PM
Can you suggest year end strategies for reducing year end self employment income? awkan Sole-Proprietorship 1 02-08-2007 11:59 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning