If we do, then we're screwed because 2003 was the one year we had a 401k distribution, and unemployment compensation. So the NOL basically gets "soaked up" that year. All other years (2004, 2005.....) were normal income years where we paid a substantial amount of tax. What to do?
2007-10-17 07:11:09 · 2 answers · asked by cheri_adele 2 in Business & Finance ➔ Taxes ➔ United States
THANK YOU. I THINK I UNDERSTAND.
2007-10-17 08:47:50 · update #1
So, what you are saying is that since 2003 was a "bad" year for us..... then we really don't get the NOL. Because that year's income was mostly unemployment and 401k distribution.
2007-10-17 08:49:50 · update #2
House fire? In your personal residence? How does that become or contribute to a NOL?
If it was a fire in your business (or if your business operated out of your home, not just that you had a home office) then it might be.
2007-10-17 07:24:29 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
If you carry back you must go back 3 years and then go forward from there. However you may opt to ignore the carryback and carry forward only. If you opt to not carry back, you still must use up the NOL within 20 years so you lose 3 years worth of writeoff if you elect to not carryback. You also must wait until future years to use the balance whereas if you carryback you can get your money immediately.
2007-10-17 07:19:59 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋