do you have to file to carryforward a nol

[WITAXLADY]

Client only have social security and a huge nol - to carry it forward does a tax return need to be filed every year?

Numbers never change as do not need/use any of it.

Will use when sell land

 

Now will this carry to their estate? I seem to remember no

Thx D

 

[DANRVAN]

13 hours ago, WITAXLADY said:

will this carry to their estate

No, it expires at death.  Case law has allowed surviving spouse a portion of NOL if they actively participated in the business.

 

13 hours ago, WITAXLADY said:

huge nol - to carry it forward does a tax return need to be filed every year

I don't know if its required but would fie regardless so it is on IRS records.

[WITAXLADY]

Thank you  - that is what I have been doing..

D

[TAXMAN]

I file em to keep alive NOL's and CG losses to move forward. You never know when you might need one.

[Catherine]

When in doubt, I tend strongly to file.

[Abby Normal]

Many times, I've corrected carryover amounts internally and not filed an amended return, if the tax didn't change, and the IRS has never inquired. Every year is a separate bucket with the IRS and they do not verify carryover items. They're just not that sophisticated, and they may never be that sophisticated.

[DANRVAN]

1 hour ago, Abby Normal said:

IRS and they do not verify carryover items.

Agree with that.

However if a return is filed, a future tax preparer can at least get a transcript and find out what went into the bucket.