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Ask Lane Your Own Question
Category: Tax
Satisfied Customers: 12214
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I have an NOL carryforward and I also have the ability to use

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I have an NOL carryforward and I also have the ability to use the Foreign Income Exclusion. Do I have to use all of my NOL first before using the foreign income exclusion? It would be more beneficial for me to use foreign earned income exclusion and only part of NOL so that I can carry NOL forward to future years when income is higher, but I want to make sure I am doing it correctly.

NPVAdvisor :

Yes, you have it ... The foreign earned income is on applicable to this year. The NOL can be carried forward. Hence use the foreign earned income exclusion and then apply as much of your NOL carry-forward as there is income left to apply

NPVAdvisor :

Because FEI excl is a yearly event and reduces income and you have a choice as to whether to apply NOL, your intuition is good


Okay, perfect. Thank you. I thought there might be a rule that NOL had to be used first.

Lane and other Tax Specialists are ready to help you

Thanks Katie,

Let me know if I an help again.

Just sat FOR LANE ONLY, at the beginning of your next question (If you'd like).

Thanks again,