NOL and carryback

[cpabsd]

I have an individual tax client that had a large loss in 2008. The loss was on the rental properties. The large loss was allowed due to large capital gains. The rental loss created an NOL. I'm confused by the new law and whether I can carryback the loss 2 or 3 years. The law states for small business. Where is the definintion of small business? It would benefit to carryback to 2005.

Thanks for your input.

[TAXBILLY]

An eligible small business (ESB) is one which has less than $15 Million in gross receipts.

Not sure if it would apply to a rental carryback.

taxbilly

[jainen]

>>The large loss was allowed due to large capital gains<<

The change in carryback rules did not affect the basic definition of an N.O.L. If the rental loss was already offset on the 1040 by capital gains, there is nothing else to carry back. (If I am misreading your post, please put up some numbers.)

[OldJack]

I agree with Jainen. Generally a 1040 reported NOL (after 2002 NOL) after current year allowed offset is carried back 2 years and then forward 20 years.

edit: I read on another forum that the new law Obama just signed changes it to a 5 year carryback.