Election to Waive Net Operating Loss Carryback

[Dan]

Question:  I have a statement that reads:  I elect under section 172(b(3) of the Internal Revenue Code to waive the carry-back period for the net operating loss sustained in year 2013, as indicated below.

 

             ---All net operating losses sustained during the year.

 

Question:  What does "All net operating losses sustained during the year mean?  Do I need to do anything with the losses for 2014? 

Edited April 16, 2015 by Dan

[kcjenkins]

Yes, each year stands alone, if you have an NOL for 2014 [not including the carryover NOL from 2013] then you would include an election for 2014 as well.  

[Dan]

KC, thanks for responding.  "All net operating losses sustained during the year."  I have a question about the underlined phrase.  Does it mean all losses are in the year of the loss or does it mean you need to deduct those losses on the next year's return if you elected 172 (b(3) above in my first post?  

Edited April 16, 2015 by Dan

[Terry D EA]

All losses are in the year of the loss. When you make the election to waive the carry back of any losses sustained or realized during the current tax year then those losses are carried forward. As KC suggested, you make the election for each succeeding year. If you realize losses for 2015 and you waive the carry back period, then ALL losses realized for 2015 are carried forward.

[Dan]

Thanks!