NOL from investments?

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  • bgiez
    Senior Member
    • Apr 2006
    • 175

    #1

    NOL from investments?

    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?
  • Davc
    Senior Member
    • Dec 2006
    • 1088

    #2
    From what you've stated, no.

    Comment

    • RitaB
      Senior Member
      • Jul 2008
      • 1382

      #3
      You are correct

      You're correct. No NOL. See if a NOL carryover worksheet opened automatically and you need to enter nonbusiness deductions. Mine is line 6, I think.
      If you loan someone $20 and never see them again, it was probably worth it.

      Comment

      • bgiez
        Senior Member
        • Apr 2006
        • 175

        #4
        Thank you, Rita & Dave

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