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Do I have to claim a deduction for a NOL, or can I carry it forward?
I have a large NOL balance generated before 2021. To keep the math easy, let's say $40,000 was carried forward to 2021.
In 2021, my income will only be around $30,000, but in 2022 it will be over $100,000. Do I have to claim the $30,000 NOL deduction in 2021, or can I carry it forward to 2022?
I read the IRS publication on NOLs but found it extremely confusing and I don't think it really answered my question. Thanks
June 29, 2022
7:59 AM
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Deductions & credits
You have to report the NOL on your 2021 return and whatever amount is not utilized can be carried forward to the 2022 tax year.
June 29, 2022
8:09 AM
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