Loss Carry forward

[AccTaxMan]

Taxpayer is a California resident.

He has loss carryover with the State of New Jersey. But he had no income at all in New Jersey in 2016.

Does he have to file a New Jersey state tax return just to preserve the operating loss carry forward?

[Roland Slugg]

Does he have to file a New Jersey state tax return just to preserve the operating loss carry forward?

I know nothing about New Jersey tax laws, but I would guess that he would not. I realize, of course, that you can do your own guessing, so someone else's guess isn't very helpful (although you sure see a lot of guessing on this Board!). Hopefully, someone in New Jersey or a neighboring state will post a more helpful and authoritative reply.

In any case, if the NOL gets "eaten away" or some of it is deemed to be used in carryover years, you will need to keep track of any such reductions, so you can deduct the correct remaining NOL in a future year when there is New Jersey income.