Accepted Answer

Hello,
Thanks for your question. You have what is called a net opertaing loss (NOL) for 2008. You can either elect to carryback the NOL to tax years 2007 and any remainder to 2006 and then carryforward any remainder after that up to 20 years OR youcan file an election to waive the 2-year carryback requirement with a statement attached to your 2008 tax return. This will enable you to just elect to carryforward the loss for up to 20 years. If you don't attach the statement to your return, you must file this election within 6 months of filing your 2008 tax return. .

You should file a Form 1045 to claim the NOL. Or file an amended return on Form 1040X for each carryback year you want a refund. Some of the itemized deductions may not restricted to be carry-overed to other years-

For more information see IRS Pub. 536
http://www.irs.gov/pub/irs-prior/p536--2005.pdf

and

Form 1045 instructions
http://www.irs.gov/pub/irs-pdf/i1045.pdf

Hope this helps,
Sincerely,

Expert:	JK_CPA
Pos. Feedback:	100.0 %
Accepts:
Answered:	10/15/2009

Certified Public Accountant (CPA)

with 5 years accounting experience and 18 years tax experience.