NOL Carryovers

[lnbehage]

When carrying an NOL forward, can a taxpayer elect not to use it (either some or all) and pass it on to the next year?

[Lion]

No

No. You or your software or both compute how much is used and how much is left to carry forward to the following year.

[NotEasy]

Not to derail the thread, I just want to say NOL carryover is probably one of the two most complicated areas in personal income tax (the other one is AMT). Does anyone not agree?

[BOB W]

Not to derail the thread, I just want to say NOL carryover is probably one of the two most complicated areas in personal income tax (the other one is AMT). Does anyone not agree?

Carryover NOLs are a lot simpler than carrybacks, say a 5yr one where several years are used by the current year carryback nol, especially when you have capital gaines, itemized deduction, AMT, tax frees, and a host of other issues that I can't remember of the top of my head. I've heard that 99% of all carryback NOL are adjusted by IRS's NOL section.

Carryforwards, if done by computer and the clients is on your system for the prior year, should be a snap. Just let the program do it's thing. Of course most low end programs may make a mess of it.

[Davc]

Not to derail the thread, I just want to say NOL carryover is probably one of the two most complicated areas in personal income tax (the other one is AMT). Does anyone not agree?

I don't agree. It's the AMT NOL carrybacks and carryforwards that are complicated.