My farm business's first year was 2020. In all it's three years—2020, 2021, and 2022—the farm incurred a net operating loss. My general understanding (please correct me if I'm wrong) is that farm NOLs in any given tax year must be used, if at all, as a carryback starting two years prior, but that the farm/taxpayer can elect to waive the carryback and have NOLs carryforward by attaching a statement declaring waiver of the carryback.
I read in a UT State Univ. publication called the Small Farm Tax Guide that "If a taxpayer does not elect out of the carryback, the NOL is treated as absorbed by the carryback years, to the extent there is income in those years to absorb it, whether or not the NOL deduction is claimed for those years."
So (correct me if I could possibly be wrong here), in none of the farm's years has it had income that could absorb a carryback. Also, because I had no understanding of NOL carryovers (I largely still don't, honestly), and because TurboTax seems to leave it entirely to the user to figure out and deal with, I have never made any carryback waiver. I also never put anything regarding my 2020 NOL into my 2021 taxes.
So my question is: Can I carryforward my NOLs from all three years? Or did I unknowingly screw something up (because of failure to waive or otherwise) such that one or more NOLS can no longer be carried forward?
Thanks!
EDIT: I'm less concerned about what to do with this year's NOL as I am about whether I can still do anything with my two previous NOLs, so I'll rephrase. #4 does have to do with this year's NOL. Simple 'yes' or 'no' answers will suffice for me here. Thanks!
1) My farm had a NOL in its first year in 2020. First year of operation, so no carryback waiver necessary; it can only carryforward, correct?
2) My farm also had a NOL in 2021. I don't believe I noted my 2020 NOL anywhere in my 2021 return. Did I need to do that somewhere in order to keep it available to carryforward when profitability is reached?
2a) If yes, can I amend the 2021 return to make the 2020 NOL available again?
3) I want keep my 2021 NOL available to carryforward, but I didn't attach a statement waiving carryback with that year's tax return. Was it necessary to do that even though there were no previous incomes that could absorb it?
4) My farm also had a NOL in 2022. I want to keep it available to carryforward when profitability is reached. Do I need to attach a statement waiving carryback even though there are no previous incomes that could absorb it?
