Got a client with a hefty loss this year. Will be carrying it forward. Now I know I need to do a letter stating he elects to forgo the carryback. Is there anyway I can include this stmt via e-file? Or can this only be done with a paper return?
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I think that is stated on page 2 of the 1045. There would be no additional statement requiredOriginally posted by geekgirldanyBrian -
NOL election to forego carryback
My software has an election to forego the carryback, which is then accepted by efile. If I forget to check, I have a diagnostic that tells me I should elect if I want to carry forward.
What software do you use? check under elections to see if it there. If you don't have an election then you should be able to type it under the "notes" feature which should be attached to your efile.
The one that is attached to my efile is : "Election to relinquish net operating loss carryback period pursuant to code section 172(B)(3), the taxpayer hereby elects to relinquish the entire carryback period with respect to the net operating loss incurred in the taxable year ending December 31, 2005"
SandyComment
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I use Taxwise. It didn't give me any warning on the diagnostic. I will double check to make sure there isn't something to be checked and see if I can find a way to attach the note to the 1045.
Thank you bothComment
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I use Taxwise, and it doesn't warn you. Nothing to check.Comment
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No it doesn't. Got a little frustrated with Taxwise this year. Had some problems with trade in assets carrying foward on business returns. It was calculating depreciation like it had not been traded. Found it on a few returns.
I finally found out how to do the election. They have a form called "elections" fill this out and it will efile. Ended up doing an extension anyways though.Comment
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