I seemed to have inherited a mess and would appreciate any guidance anyone could give. Taxpayer has had a rental which has continually generated losses and since he has very little other income, there have been (or should have been NOLs) for several years. Here's the disastrous scenario, if I understand it correctly, with prior returns done by different preparers or, in one case, by the taxpayer himself!
2010: return done incorrectly originally with no depreciation taken; 2+ years later, return was amended, using appropriate depreciation and creating a NOL. Am I correct to assume that it was too late to waive carryback? [The waiver form was filed with amendment, I believe but NOL wasn't used on subsequent returns.]
2011: return done by taxpayer; no Schedule E (although there should have been!). It was later amended with an appropriate Schedule E, generated a loss and a NOL but no NOL waiver filed and no effort made to carryback NOL.
2012: return done with rental income but no depreciation, timely filed by 04/13; amended 8 months later by prior preparer with a waiver filed (But was it too late? Doesn't it have to be within 6 months of filing of original return?)
2013: taxpayer is desperate--as had a large 1099-C for rental property. Am I correct in assuming that it is too late to "revive" any NOLs from the past? What am I missing? (I don't do NOLs very often and it is especially difficult to figure out when I inherit someone else's mess!)
I'd appreciate any suggestions by some of the experts on this forum. Thanks.
2010: return done incorrectly originally with no depreciation taken; 2+ years later, return was amended, using appropriate depreciation and creating a NOL. Am I correct to assume that it was too late to waive carryback? [The waiver form was filed with amendment, I believe but NOL wasn't used on subsequent returns.]
2011: return done by taxpayer; no Schedule E (although there should have been!). It was later amended with an appropriate Schedule E, generated a loss and a NOL but no NOL waiver filed and no effort made to carryback NOL.
2012: return done with rental income but no depreciation, timely filed by 04/13; amended 8 months later by prior preparer with a waiver filed (But was it too late? Doesn't it have to be within 6 months of filing of original return?)
2013: taxpayer is desperate--as had a large 1099-C for rental property. Am I correct in assuming that it is too late to "revive" any NOLs from the past? What am I missing? (I don't do NOLs very often and it is especially difficult to figure out when I inherit someone else's mess!)
I'd appreciate any suggestions by some of the experts on this forum. Thanks.
Comment