NOL carryback on late filed 2011 return?

[Possi]

My military client did not file 2011. I am doing 2011 and 2012 and this gets confusing.

For 2011, it's a regular tax return. Taxable income, tax, getting a small refund.

For 2012, she was deployed and only $20 of her W2 is taxable... a few hundred in dividend income. She is getting all of her withholding back, no tax liability...

BUT, she has a rental property that is giving her a NOL of a couple thousand.

Since I am doing the 2011 tax return at the same time, how do I go about carrying that NOL back and getting her some more $$? Do I need to file a 1045 with the 2011 return?

Thanks!

I'm still looking at this, and I don't think I need the 1045 for 2011. I think I just enter the NOL as a negative number on the "other income" line and show that it is a carryback from 2012. Am I understanding this correctly?

[WhiteOleander]

If you carryback, you have to go back two years. So, you would have to go back to 2010 first. Then, if any is left, go to 2011.

[Possi]

thanks

If you carryback, you have to go back two years. So, you would have to go back to 2010 first. Then, if any is left, go to 2011.

I will amend 2010. I didn't do 2010, so I'll have to re-create it and then amend it.

[WhiteOleander]

Well, you need to assess the situation. It might be better to forgo the carryback and carry forward. Just depends on the tax benefits.

[Possi]

I did

Well, you need to assess the situation. It might be better to forgo the carryback and carry forward. Just depends on the tax benefits.

As a matter of fact, I did. I carried it forward after all. Since I didn't do the 2010 return, I would have to charge them to amend it, and it wasn't worth it.

Thanks for helping me out with that. I really appreciate it.