My firm has a child actor (Sch C) with an NOL carryforward. If there was NO income/loss in the 2013 year (and no other tax return items), does he have to file just to "keep" the NOL carrying forward?
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An arguable question.
But I would say not.Evan Appelman, EA -
I would say yes.
The carryforward comes from the previous year. If the previous does not show an NOL (no tax return), how could it be carried to the next year?
An NOL comes from Line 41 of the 1040, not AGI. So I think the Standard Deduction/Itemized Deductions will affect the NOL for the following year.
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I would recommend filing a return with NOL carryforward. Make it much easier for the software.Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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The same result can be achieved...
By preparing and retaining Form 1045 Schedule B. And a lot less nuisance for everyone than filing a "blank" 1040.Evan Appelman, EAComment
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Agree with appelman
And then slap that NOL on some future return when the child has a filing requirement. I do the same thing with Capital Loss carryforwards.Comment
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