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Old 08-09-2015, 10:32 AM
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Filing Required To Carry Forward NOL?

I was not required to file a 1040 in 2013 and 2014, and I had net investing losses, so I didn't file. I must file in 2015 because I received an inherited IRA. In order to deduct the prior years losses, must I now file a 2013 and 2014 1040?



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Old 08-09-2015, 07:48 PM
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I was not required to file a 1040 in 2013 and 2014, and I had net investing losses, so I didn't file.========>>You had to file your 2013/2014 returns;
no one including IRS knows you had a loss to mitigate until you file. If the loss is significant and you do not have the income tax to offset you may extend the loss over three years.Your accountant will help with that. NOL results from the situation in which your business has more allowable tax deductions than it has taxable income. In this case, the business has negative income, or a net operating loss. NOL is applicable only to pass-through businesses, including sole proprietorships, LLCs, partnerships, and S corps, in which the income or loss from the business passes through to the individual income tax return.NOL for C corps is a different type of loss, and not included in this article.


I must file in 2015 because I received an inherited IRA. In order to deduct the prior years losses, must I now file a 2013 and 2014 1040?=====>>Yes as said; UNLESS you file your 2013/2014 returns, irs/Dept of Revenue of your state does not know if you carry capital loss. If your long-term capital losses you can deduct your capital losses, but they are not a regular itemized deduction. Capital losses can be deducted from your taxable income using Form 1040, Sch D. Capital loss carryovers are reported using the Capital Gains Carryover Worksheet. The maximum amount you can deduct is $3K ($1,500 if you are MFS) or your total net loss if it's less than $3K. If your net loss is greater than the maximum allowed amount, you can carry the excess amount over to future tax years. Losses on your investments are first used to offset capital gains of the same type. So short-term losses are first deducted against short-term gains, and long-term losses are deducted against long-term gains. Net losses of either type can then be deducted against the other kind of gain. So, for example, if you have $2k of short-term loss and only $1k of short-term gain, the net $1k short-term loss can be deducted against your net long-term gain (assuming you have one). If you have an overall net capital loss for the year, you can deduct up to $3k of that loss against other kinds of income, including your salary and interest income, for example. Any excess net capital loss can be carried over to subsequent years to be deducted against capital gains and against up to $3k of other kinds of income.



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