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Level 1
posted Apr 1, 2023 11:48:39 AM

NOL Carryforward for C Corp

I have a C corp That I am doing taxes for.

In 2021, it incurred a 95K loss

In 2022, it incurred a 159K loss in bad debts and a earnings of 100K.

According to turbotax, I can only utilized 80K from 2021 for this year (80% of my earnings) and the remaining 15K is pushed forward to 2023.

 

As a new startup, I expected this but I am difficulty understanding how to use the NOL.

If I add the 159K of losses to 2022 this year, then my earning drop to -59K (loss)

Does the NOL of 95K (2021) + 59K then get carried forward to 2023?

 

Please advice, this is a bit confusing

 

Thanks

 

0 2 814
1 Best answer
Expert Alumni
Apr 2, 2023 10:24:07 AM

Yes, your NOL carryovers are netted with your current year income to utilize as much of the prior loss as possible. The excess becomes your NOL carryover to next year.

2 Replies
Expert Alumni
Apr 2, 2023 10:24:07 AM

Yes, your NOL carryovers are netted with your current year income to utilize as much of the prior loss as possible. The excess becomes your NOL carryover to next year.

Level 1
Apr 2, 2023 12:37:18 PM

thanks for the reply!!