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MequonCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2342
Experience:  CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
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Question about NOL and 5 Year Carryback I have been a passive

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Question about NOL and 5 Year Carryback

I have been a passive investor and partner in a real estate development company but I have a full time job in the Medical Field. In 2004, I made $194k in this partnership. In 2008, I lost $94,500.

Being passive, do I qualify in any manner to carryback my losses in 2008 against my 2004 income? Because they are passive, I get no tax benefit until I have a future gain.
Submitted: 6 years ago.
Category: Tax
Expert:  MequonCPA replied 6 years ago.



The 5 year carryback applies to net operating losses that appeared on your 2008 return. The suspended passive losses must be carried forward and used to offset future income, gain on sale or written off upon liquidation.


To determine the amount of NOL (if any) from your 2008 return, use Schedule A from Form 1045, link below to form and instructions.


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