NOL on amended return

[Bill Tubbs]

When 2011 was originally filed, it included Form 4684 for casualty loss on business property and on that we indicated we expected some insurance proceeds. Well, the insurance claim yielded nothing, so we're now amending the 2011 to remove the amount we thought insurance would come through with. That results in an NOL. I understand that to waive the carryback period, it must be done on a timely filed return. Since the amendment now is what creates the NOL, the election to forgo the carryback would be timely filed as long as I attach it to this amendment, right? So, I can elect to forgo the carryback (client would just like it carried forward), right?

Bill

[DaveO]

I agree Bill but I have no cite. I had a client that was defrauded out of a couple of rental houses. She inherited them from her husband, the properties were paid off. A couple of con artists convinced her to sell to them for "pennies on the dollar". I discovered the fraud after the fact and amended the return resulting in an NOL. I filed the election to forego the carryback and it was acknowledged by the IRS.

[Bill Tubbs]

Thanks

I'm glad to hear that you had success with this -- which I know that doesn't always mean it's correct, but it's still better than hearing you got shot down. I'm planning on proceeding with this and hopefully I'll have similar success.