OK everyone I am in need of a little clarification in regards to NOL's.
In the tax book page 8-16 2007 individual edition it states" The election must be made on the original return filed by the due date(including extensions). If the taxpayer fails to file the return on time with this election, the taxpayer must Carry the nol back under the carry back rules, even if no benefit is derived by carrying the nol back".
Situation is client filed a timely 2006 return but failed to include there 2006 partnership k-1 information which ends up creating a nol. I am now amending the return.
Can I include the carry-forward election with this amendment? or am I stuck carrying it back 2 and then forward 20?
I think if I read this correctly I have no choice I must carry it back first, but I was hoping you all might have some advice or clarification.
Thankfully I didn't prepare the original return, In-fact I told them not to prepare it until we had the 1065 done but who listens to me.
In the tax book page 8-16 2007 individual edition it states" The election must be made on the original return filed by the due date(including extensions). If the taxpayer fails to file the return on time with this election, the taxpayer must Carry the nol back under the carry back rules, even if no benefit is derived by carrying the nol back".
Situation is client filed a timely 2006 return but failed to include there 2006 partnership k-1 information which ends up creating a nol. I am now amending the return.
Can I include the carry-forward election with this amendment? or am I stuck carrying it back 2 and then forward 20?
I think if I read this correctly I have no choice I must carry it back first, but I was hoping you all might have some advice or clarification.
Thankfully I didn't prepare the original return, In-fact I told them not to prepare it until we had the 1065 done but who listens to me.
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