Thank you sir graciously for a good answer. I request to clarify the following:
(1) Should I leave the NOL generating years of 2014 and 2015 alone. Meaning I will add up the prior two years (2012 and 2013 unused carryovers) and hop over to apply into 2016 tax year.
(2) Am I out of luck to carryback to 2012 due to statute of limitations of 3 years for 1040x, instead only carryback to preceding single year of 2013. Thus 2013 carryback will add 2014 with 2015 carryback to be used into 2016 tax return.
However, from pub 536, I interpreted NOL generating year (within 3 years from original filing date - 2014 filed on April 15, 2015 allowing April 15, 2017 to fall within 3 years) and further giving me two prior years to carryback 2014 NOL to 2012.
These two extra prior years in addition to 3 years are also illustrated by (<a rel="nofollow" target="_blank" href="
http://www.thetaxadviser.com/issues/2011/aug/clinic-story-06.html">http://www.thetaxadviser.com/issu... follow:
...... X files his 2011 Form 1040 on April 15, 2012. Since his claim for credit or refund is attributable to an NOL, X has until April 15, 2015, to file an amended return for 2009 under Sec. 6511(d)(2)(A).
I wonder if these two extra years are allowed. essentially resulting into 6 years rather than 3 years for 1040X amendment instructions as illustrated above.
Sincere Regards!
