Tax

Have a Tax Question? Ask a Tax Expert

Tax

# For the tax years: 2008,2009,2010,2011 I realized NOL for

Customer Question
For the tax years: 2008,2009,2010,2011 I realized...
For the tax years:
2008,2009,2010,2011
I realized NOL for each year due to losses in real estate.

I am amending each year, because I did not carry the NOL forward correctly.

Here is what I am doing for example:

2008 NOL indicated on line 21 I reported: -743,260 and I calculated NOL for 2008 of -1,471,053 (using form 1045 and Pro Series tax software)

2009, I continued to report the -743,260 (2008) + -1,471,053 = -2214313 NOL carry forwared, then using form 1045 I compute NOL for 2009 etc

My specific question is: Am I carrying the loss forward correctly. It seems that as long as I have no income to offset this loss against, it will keep moving forward on line 21 from year to year until I finally realize some income and can capture this credit. Ami I doing the carry forward "reporting" correctly by accumulating it on line 21?
Submitted: 4 years ago.Category: Tax
Show More
Show Less
12/1/2012
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 4 years ago
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,847
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

NPVAdvisor : yes, you are. And you are correct that until you have income the losses can be carried forward. ...... You should apply the oldest losses first as income arises. .... You need to retain the amount of each years loss. Fir this purpose AND because once a given years loss is more than 20 years old, you can no longer use the loss
JACUSTOMER-1d8g727w- :

ok, so just a little more advice

JACUSTOMER-1d8g727w- :

to make sure I understand you

JACUSTOMER-1d8g727w- :

each of these years 2008 through 2011, I had fantastic losses

JACUSTOMER-1d8g727w- :

so using pro series software by intuit, and advice from my cpa

JACUSTOMER-1d8g727w- :

I have a math background by the way

JACUSTOMER-1d8g727w- :

I compute the NOL on form 1045 schedule A

JACUSTOMER-1d8g727w- :

this is then reflected on line 21 of the following year 1040

JACUSTOMER-1d8g727w- :

and I keep adding it up, with correct supplement statement

JACUSTOMER-1d8g727w- :

until I finall hit this year

JACUSTOMER-1d8g727w- :

when I realized a big gain

JACUSTOMER-1d8g727w- :

so I want to apply all of that towards my gain,

JACUSTOMER-1d8g727w- :

I was just looking for one final oppinion before I sent in my ammended 2009-2011 returns

JACUSTOMER-1d8g727w- :

so I am correct?

JACUSTOMER-1d8g727w- :

hello?

NPVAdvisor : Absolutely, you've done it well. It's not "rocket science"
JACUSTOMER-1d8g727w- :

ok then one last question same topic

NPVAdvisor : 1. You can substantiate the losses
JACUSTOMER-1d8g727w- :

yes

NPVAdvisor : 2. A large transaction will raise the flag
JACUSTOMER-1d8g727w- :

ok on line 21 other income statement, I see

NPVAdvisor : butflag but it sounds like you've documented well
JACUSTOMER-1d8g727w- :

yeah I know, and I have documented it very well

JACUSTOMER-1d8g727w- :

on the supplemental statement line 7

JACUSTOMER-1d8g727w- :

Net operating loss caryover from prior year

JACUSTOMER-1d8g727w- :

If you put anything here, then it seems to reduce NOL for current year...Is this the place I put it when I want to finally use it?

NPVAdvisor : Exactly ... Turbo tax?
JACUSTOMER-1d8g727w- :

no this is protax

JACUSTOMER-1d8g727w- :

just need to know that I also understand this line

JACUSTOMER-1d8g727w- :

sorry not pro tax

JACUSTOMER-1d8g727w- :

pro series

JACUSTOMER-1d8g727w- :

it is sort of like lacert

NPVAdvisor : ok, intuit's product ... Yes used it
JACUSTOMER-1d8g727w- :

strange thing is that if you use this product in the future, you may want to know

NPVAdvisor : yes intuit's products seem to expect you to always have som invome
JACUSTOMER-1d8g727w- :

that if you "import" a previous year, then the program puts your NOL on line 7 automatically which is not correct if you don't plan to use it that year

NPVAdvisor : sameYup same issue, or logic
JACUSTOMER-1d8g727w- :

ok good that you concure with me, I had to manually correct it....wooh that is the answer I wanted

NPVAdvisor : Assumption is that you always have some income
JACUSTOMER-1d8g727w- :

that would be nice but I had 5 solid years of losses, real beating

JACUSTOMER-1d8g727w- :

this year I can finally clime out and start over and I want to use those losses to get me going again

NPVAdvisor : That's what it's there for.... The tax policy is that there should be some incentive for hangin' in there
JACUSTOMER-1d8g727w- :

ok, well to sum up

JACUSTOMER-1d8g727w- :

1. carry all prior years NOL on line 21 and accumulate the losses with proper documentation for each year until I have a gain

JACUSTOMER-1d8g727w- :

2. When I do have a gain, use line 7 to show I am using a portion of the loss carried on line 21 towards the gain

JACUSTOMER-1d8g727w- :

that is line 7 of the line 21 supplemental statement

JACUSTOMER-1d8g727w- :

Looks like I am good to go then

NPVAdvisor : sounds like you have your arms around it ...Yes, he supp for 21
NPVAdvisor : ok I see it
JACUSTOMER-1d8g727w- :

ok thank you

NPVAdvisor : Ok looks like no have what you need
NPVAdvisor : You mind I I change to q and a format? Helps me with MY documentation
JACUSTOMER-1d8g727w- :

no problem

JACUSTOMER-1d8g727w- :

I had a lot of rental real estate that fell apart

JACUSTOMER-1d8g727w- :

turned 5M into -5M

JACUSTOMER-1d8g727w- :

oh yes a very big ouch

JACUSTOMER-1d8g727w- :

won't do that one again

JACUSTOMER-1d8g727w- :

anyway thanks for your time I appreciate it

NPVAdvisor : actuallyOuch actually you're doing this at a good time ... Lots of folks beginning to dig out ... So you situation is not so atypical
JACUSTOMER-1d8g727w- :

I figured as much

JACUSTOMER-1d8g727w- :

I barely avoided bankruptcy then one of my investments went positive and I recovered

JACUSTOMER-1d8g727w- :

take care

NPVAdvisor : You as well .....Positive feedback appreciated ... That's how WE get paid :)
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 4 years ago

Gary,

I think you bolted before I replied.

You take care as well
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 4 years ago

Gary,

I was looking to see if you ever provided any feedback, and noticed that the years you are talking about amending begin with 2008.

IRS says that you can only go back three years to amend for refund purposes.

Now, since you're not asking for a refund for THAT year, you may be fine.

I even called my tax atty this AM and he said the same thing, that you should be fine, but you may want to think through how you present this.

One idea s to amend those first couple of years first, with your reason on the 1040x being that you wanted to correct NOL numbers.

Then later amend the most recent year(s).

Another route: get a good EA to work with to make the case that you are not amending for a 2008 refund.

Third idea: amend everything "to get it right," and then continue to use the losses in the future years ... You have until 2028.

Given your question about figuring the loss and correct form usage, my focus was not on the tax years themselves.

Lane

Tax Professional: Lane, JD, CFP, MBA, CRPS replied 4 years ago
Hi Gary,

I'm just following up with you to see how everything is going. Did my answer help?

Let me know,
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,847
12,847 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

Lane is online now

A new question is answered every 9 seconds

• Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
• Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

## What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

## Meet the Experts:

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
On october 30th I mailed form dt individual to the IRS in
on october 30th I mailed form dt individual to the IRS in Connecticut Certified mail showed it had been delivered on Nov 2 I have heard nothing … read more
Lane
JD, CFP, MBA, CRPS
12,847 satisfied customers
We are a software development in India with our clients in
Hi...we are a software development in India with our clients in the US offshoring their software to us. We dont have a establishment in the US. Recently our client gave us the W-8BEN to fill. Could yo… read more
Barbara
Enrolled Agent, Paralegal
3,458 satisfied customers
Can I report rental income in my tax return on a property
Can I report rental income in my tax return on a property thar is owned by my father? He does not live in the US is not a US citizen and can sign a document to allow me to receive the rental… read more
Robin D.
13,695 satisfied customers
1099-R with distribution code 3. Can I get an earned income credit?
If someone receives a 1099-R with a distribution code 3, can they qualify for earned income credit? The person receives his pension because he became disabled.… read more
Bizhelp
Certified Public Accountant (CPA)
Bachelor's Degree
638 satisfied customers
Form 1120, cash basis. If Taxes paid to IRS are deductible,
Form 1120, cash basis. If Taxes paid to IRS are deductible, are refunds for overpayment the equivalent of income?… read more
Certified Financial Planner(R), Pro
Master\u0027s Degree
723 satisfied customers
How do I get a State Tax Lien off my credit report!!! My
How do I get a State Tax Lien off my credit report!!! … read more
abci168
Principal
27 satisfied customers
Want to see on irs website the correct way to report
want to see on irs website the correct way to report personal items i sold that show on my 1099k … read more
Certified Financial Planner(R), Pro
Master\u0027s Degree
723 satisfied customers
A Form 1041 is filed for a Credit Shelter Trust & shows a
A Form 1041 is filed for a Credit Shelter Trust & shows a loss on the Taxable Income line (Page 1, line 22). Is this loss carried forward?… read more
abci168
Principal
27 satisfied customers
Federal Tax Credit or NC Tax Credit For 2017, is there any
Federal Tax Credit or NC Tax CreditFor 2017, is there any type of tax credit for replacing a roof on a historical house (1870)? It is primary residence. They will either replace the roof or do "hydros… read more
Barbara
Enrolled Agent, Paralegal
3,458 satisfied customers
What is the purpose of irs form 2297. by signing this form,
what is the purpose of irs form 2297. by signing this form , am i giving up my right to my past refund? … read more
abci168
Principal
27 satisfied customers
NC Tax Credits - Does NC have a tax credit for 2016 tax year
NC Tax Credits -Does NC have a tax credit for 2016 tax year for installing solar panels?Thanks, JW… read more
abci168
Principal
27 satisfied customers
What tax form is filed to report dividends paid by US Corp?
What tax form is filed to report dividends paid by a US Corp which is owned by a Canadian Corp? I think it might be 1042S. I want to know the rate of WH.… read more
abci168
Principal
27 satisfied customers
On a Partnership K-1, foreign income items are reported on
On a Partnership K-1, foreign income items are reported on Line 16, but in addition there is a separate schedule listing foreign currency gain, Subpart F income and qualified fund income under Sec 129… read more
abci168
Principal
27 satisfied customers
Summary: I did receive IRS audit for un-reported income for
Summary: I did receive IRS audit for un-reported income for year 2014. Details: my brother did taxi service and I did open square up merchant account so he can charge his customers using credit cards … read more
Mark Taylor
Certified Public Accountant
Masters
2,217 satisfied customers
Can franking credit on an Australian income tax return be
Can franking credit on an Australian income tax return be used on Form 1116 as tax paid on the franked distributions? … read more
Robin D.
13,695 satisfied customers
ON A 1041 FORM IS THE TAX FIGURED ON ADJUSTED TOTAL INCOME
STEPHANIE, ON A 1041 FORM IS THE TAX FIGURED ON ADJUSTED TOTAL INCOME MINUS THE 4050 EXEMPTION? … read more
Lane
JD, CFP, MBA, CRPS
12,847 satisfied customers
This is the question: for IRS tax reporting purposes on 2017
This is the question: for IRS tax reporting purposes on 2017 tax returns, what is this relationship between items donated to a qualified charity like Goodwill? Say I have a menu from a restaurant and … read more
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
When using form 1040, how and where does one report income
When using form 1040, how and where does one report income from life insurance death benefits? … read more
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less