Loss from a Partnership

[Duane Anderson]

Can a loss on a 2009 partnership return (passive loss) be carried back to 2008 since the taxpayer's income is so low in 2009 it is not needed? Or does it have to be carried formward? The taxpayer has invested much more money in this casino than the amount of the loss. Thanks, Duane Anderson

[BOB W]

Can a loss on a 2009 partnership return (passive loss) be carried back to 2008 since the taxpayer's income is so low in 2009 it is not needed? Or does it have to be carried formward? The taxpayer has invested much more money in this casino than the amount of the loss. Thanks, Duane Anderson

NOL's are determined at the 1040 level, not at the partnership. Either Carryback or carryforward is looked at there (1040).

[Davc]

Disagree. The loss flows to the individual partner on the K-1 and is used on the 1040. If this results in an NOL at the individual level the the election to forgo or change the carryback year is made on the 1040.