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Returning Member
posted Oct 19, 2021 6:31:57 PM

I have NOL in 2019 to carry forward. 2020 has NOL on its own. Do I need to deduct 2019 NOL in 2020 income, or skip 2020 and carry 2019 NOL directly to 2021?

0 15 1775
15 Replies
Level 12
Oct 19, 2021 9:18:33 PM

No, if you do the carry forward then carry the 2019 NOL to 2020 and recalculate your NOL for 2020...if any....then carry that total NOL to 2021.

Level 15
Oct 20, 2021 7:42:05 AM

Did you just recently complete the 2019 return ?   Was it filed after 10/15/2020?

Level 15
Oct 20, 2021 10:30:13 AM

Just double checking ... did you make the election to "waive the carryback" of your 2019 NOL? 

 

If you did not make that election, the 2019 NOL is carried BACK 5 years, not forward.

Returning Member
Oct 26, 2021 6:10:04 PM

I filed 2019 before 10/15/2020. 

Returning Member
Oct 26, 2021 6:10:56 PM

I did not make the election to "waive the carryback". Do I have to and is there a deadline? Thanks. 

Level 15
Oct 27, 2021 7:32:04 AM


@tangyue wrote:

I did not make the election to "waive the carryback". Do I have to and is there a deadline? Thanks. 


 

It was due by the due date of your 2020 tax return (including extensions).  So unless you filed a 2020 extension AND live in a disaster area that has the IRS has extended the due date past now, it is too late to make that election, so it will need to be carried BACK.

Level 15
Oct 27, 2021 12:49:55 PM

I did not make the election to "waive the carryback". Do I have to and is there a deadline? Thanks.

 

yes you had to for 2020 by the due date of the return including any valid extensions. this is no redo, without the election the NOL must be carried back 5 years and any remaining carried forward.  the problem is does Turbotax do amended returns for 2015

Returning Member
Nov 24, 2023 8:18:35 AM

Just make sure I understand. I must carry 2019 NOL to 2020 no matter 2020 has NOL on its own or not? 

@M-MTax 

Level 15
Nov 24, 2023 9:47:23 AM

unless you made an election with the 2019 and 2020 returns to forego the carryback period the NOL must first be carried back 

IRC SEC 172

 (D)Special rule for losses arising in 2018, 2019, and 2020
(i)In general
In the case of any net operating loss arising in a taxable year beginning after December 31, 2017, and before January 1, 2021—
(I)such loss shall be a net operating loss carryback to each of the 5 taxable years preceding the taxable year of such loss, 

 

any loss not used becomes a carryforward to 2021

 

Returning Member
Nov 24, 2023 12:05:44 PM

I understand I need to elect to carry forward.

 

My real question is, for example:

had 2022 NOL, elected to carry forward

will have loss in 2023, without deducting 2022 NOL. 

Must I still deduct 2022 NOL in my 2023 income? OR I can carry 2022 NOL in its original amount to 2024? 

 

Thank you!

Level 15
Nov 24, 2023 12:17:57 PM

if you haven't timely filed 2019 and 2020, the carryforward election is not available. 

Returning Member
Nov 24, 2023 12:37:20 PM

I made election to carry forward my 2022 NOL. In 2023, I will have loss without deducting 2022 NOL. Do I need to deduct 2022 NOL in 2023 return and carry the total NOL forward? Or can I carry both 2022 NOL and 2023 NOL separately forward?  

Level 15
Nov 24, 2023 12:44:03 PM

if you make a timely NOL carryforward elections in 2019 and 2020, you must first carry those NOLs to 2021 any left gets carried to 2022 and the 2023. 

Returning Member
Nov 24, 2023 12:47:58 PM

"you must first carry those NOLs to 2021", what if 2021 has negative income without deducting any NOLs from previous years?  

Level 15
Nov 27, 2023 5:57:19 AM

You must follow the NOL rules (that are confusing at best)  and recompute the 2021 return to add the NOL then follow the carry forward of the allowed NOL amounts. This is not a simple calculation so I highly recommend you seek professional assistance with this issue.