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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 7252
Experience:  15years with H & R Block. Divisional leader, Instructor
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I am doing my taxes right now. It is looking like I am

Resolved Question:

I am doing my taxes right now.

It is looking like I am going to have a NOL of mid five figures. Is it true that I can offset 2013 taxes or go back to 2010/2011 and offset some of the gains I had?

Unfortunately, we are behind three years on taxes and I am doing them now. 2012 shows a sizable loss that would offset quite a bit of income in 2010.

The income in 2010 however is from another business, could losses from Business (B) offset gains from Business (A)? Or does it have to be the same business offseting those losses?
Submitted: 9 months ago.
Category: Tax
Expert:  Robin D. replied 9 months ago.

Robin D. :

Hello and thanks for trusting me to help you today. I am a tax adviser with over 15 years of experience.
Generally, if you have an NOL for a tax year ending in 2012, you must carry back the entire amount of the NOL to the 2 tax years before the NOL year (the carryback period), and then carry forward any remaining NOL for up to 20 years after the NOL year (the carryforward period). You can, however, choose not to carry back an NOL and only carry it forward.

Robin D. :

If you choose to carry back the NOL, you must first carry the entire NOL to the earliest carryback year. If your NOL is not used up, you can carry the rest to the next earliest carryback year, and so on.

Robin D. :

In this way the NOL will be used against other income in the year that the NOL is applied.

Customer:

Hello Robin. Sorry I didn't enter the chat fast enough, I'm at work. I see youre gone, but I know you'll get this after I exit.

Customer:

Thank you.

Customer:

So I can carry itback to 2010 which was the year I made the most money?

Customer:

I also have a pretty decent short term capital loss I can write down in 2012 as well. I guess my buggest question is can the NOL offset gains from another business if my wife and I are filing jointly?

Customer:

Hi

Robin D. :

You would need to carry it back 2 years and 2010 would be the first year you could carry it back to.

Robin D. :

Yes, 2010 would be used first then anything left over would have to be applied to 2011.

Customer:

Really? So if I have a $70xxx NOL this year and I made $100xxx in 2010, I can wash 70% of that?

Customer:

And it doesn't matter where the inome comes from/

Robin D. :

That is correct

Robin D. :

The 2010 year could use up most but the 2011 year would be used

Robin D. :

\If you have any left then the 20 year carry forward is started in 2013

Customer:

And the fact the NOL coems from an LLC doesn't matter either?

Customer:

Or would it have had to have been a Corporation?

Robin D. :

No, if this is your personal loss then your carryback is to your personal return. If this is a corp loss the corp would show the loss and so forth

Robin D. :

You cannot use a corp loss on your personal return except the pass through portions

Customer:

Our business loss was from an LLC.

Customer:

2012 NOL is from an LLC. 2010 gain is from an LLC (just not the same LLC).

Robin D. :

On your 1040 do you have an NOL

Robin D. :

The LLC is single and you file Schedule C

Customer:

I'm in the middle of it now. We will see. I got to that section and saw what the entilements were for a NOL. I've never had a loss before so this was new to me.

Customer:

Guess I'll just wait to see when I am done and come back. :

Customer:

:)

Robin D. :

That would be fine too

Robin D. :

My advice was for a NOL showing on your 1040

Customer:

Ok. I'll see what it shows (if anything) when I am done shortly.

Customer:

Thanks again! :)

Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 7252
Experience: 15years with H & R Block. Divisional leader, Instructor
Robin D. and 5 other Tax Specialists are ready to help you

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