Client has negative taxable income due to large itemized deductions (medical expenses in excess of 7.5%, taxes, mortgage interest & charitable contributions) exceeding AGI. AGI is composed of interest, dividends, capital loss from sale of investments on 1099B, pension income, taxable social security.
My software automatically produced an election to "relinquish the NOL carryback period."
From what I've read in Pub 536, it doesn't seem to me to fit the definition of an NOL as there is no business component in any of her income or deductions, unless you look at investments as business.
Can anyone tell me whether she legitimately has an NOL or not?
My software automatically produced an election to "relinquish the NOL carryback period."
From what I've read in Pub 536, it doesn't seem to me to fit the definition of an NOL as there is no business component in any of her income or deductions, unless you look at investments as business.
Can anyone tell me whether she legitimately has an NOL or not?
Comment