A while back I posted on this subject, I was having an awful time on a particular return. Here's what I learned about NOL's.
I was concerned about my carryback of an NOL when there was no AMT NOL to also carry back. I then thought since no tax was reduced in 2004 (because of reworking the AMT in that year), I could then carry the NOL to 2005. Reworking the AMT in that year saved a little money.
It was suggested that I probably did have an AMT NOL after all to carryback from 2006 to 2004 because of the 90% of the AMT limit. But unfortunately - I did not. I worked this through, called NATP, and gererally agonized over this for a long time. Well, the 90% limit limits your AMT NOL, but you have to have a number to limit. If the number is zero then it is zero.
And I also learned that if you have no AMT NOL and when reworking the 2004 AMT you have more AMT tax and therefore no overall tax reduction in that year - you can use up your regular NOL to no tax benefit!! So nothing to carry to 2005.
After all that we made a carryforward instead.
Just thought this might help someone someday.
I was concerned about my carryback of an NOL when there was no AMT NOL to also carry back. I then thought since no tax was reduced in 2004 (because of reworking the AMT in that year), I could then carry the NOL to 2005. Reworking the AMT in that year saved a little money.
It was suggested that I probably did have an AMT NOL after all to carryback from 2006 to 2004 because of the 90% of the AMT limit. But unfortunately - I did not. I worked this through, called NATP, and gererally agonized over this for a long time. Well, the 90% limit limits your AMT NOL, but you have to have a number to limit. If the number is zero then it is zero.
And I also learned that if you have no AMT NOL and when reworking the 2004 AMT you have more AMT tax and therefore no overall tax reduction in that year - you can use up your regular NOL to no tax benefit!! So nothing to carry to 2005.
After all that we made a carryforward instead.
Just thought this might help someone someday.