How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28935
Experience:  Taxes, Immigration, Labor Relations
870116
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

Hi I have tax loses since 2006 of about 700k and on 2011 tax

This answer was rated:

Hi I have tax loses since 2006 of about 700k and on 2011 tax return they were done wrong and i received a letter that i owe 1ok. They are telling me i can't roll over my credits since 2006 i could only do 3 years is this correct?

Lev :

Hi and welcome to our site!
You may use losses from 2006 on your 2011 tax return.
However - there are speciial rules how these losses are claimed.
Also please specify what type of losses did you have?
Were that business losses or capital losses?

Customer:

yes it was a dry cleaners business.. they toll me it was only 3 year i could go back on credits what would i have to do to be able to go back that far?

Lev :

If that was a business loss - that means - you had NOL - net operating loss in 2006.
There are special rules how to use NOL.
If you have 2006 NOL - you are required to carry it back for three years and partially apply for 2004 and 2005. Then - you need to determine teh unused part and will carry it to 2007 and following years unless fully used. The NOL is carried forward for 20 years.
You need to prepare calculations about your NOL and attach to your 2011 tax return.

Customer:

Thank you for your quick response, where would i get a NOL form? or would i just attached my previous tax loses and set it to the IRS?

Lev :

First of all - you need to be sure that your 2006 tax return is properly filed and the amount of NOL is calculated and reported to the IRS. If you did not file your 2006 tax return - you need to do that now. If you filed but NOL was not reported - you need to use form 1040X to make corrections.

Customer:

k. thank you i work on it..

Lev and 3 other Tax Specialists are ready to help you