NOL Carryback years

[BHoffman]

Client has NOL in 2015 so I first carry that back to 2012, and if anything is left that carries back to 2013, and then 2014, right?

I'm confused about whether 2012 is the 1st preceding year or the 3rd preceding year.  

Thanks

[jklcpa]

Unless the taxpayer meets the exception and is allowed to take the NOL back 3 years, the standard carryback is to the 2nd preceding year and would only go back to 2013, then any unused can be applied to 2014, then carried forward for 20 years.

To answer your question, if 2015 is the loss year, then the 3rd preceding year is 2012, 2nd preceding year is 2013, 1st preceding year is 2014.

[BHoffman]

Thanks!  I am taking it back to 2013.