Diane Posted February 23, 2008 Report Posted February 23, 2008 I have a new client. Their 2006 tax return shows an NOL of $30,000. I see no evidence from the copy of the return they gave me that the election was made NOT to carryback the NOL. I also see no evidence that a Form 1045 was filed, or a 1040X. If none of these were filed what would be the first year of the carryback? I guess what I mean is - how far back do I go to do a 1040X? Do I amend 2003 or 2004 first? Sometimes I can't quite figure out what years are still open. Diane Quote
Maribeth Posted February 23, 2008 Report Posted February 23, 2008 A 2006 NOL would be carried back two years. The oldest year would be the first year to which it would be carried back. So 2004 would be the first year, 2005 the second year, and then unused NOL would be available for 2007. Since the election to carryforward was not made, you MUST carryback even if there is no tax benefit. Maribeth Quote
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