How do I enter capital loss that I incurred in 2017? My situation is: I had a capital loss in 2017 and net operating loss in 2018. So, I did not file returns for 2017/8.

[AmeliesUncle]

Are you saying you capital loss i 2017 was NOT able to be used, so it carried forward?  If so, in the section about Stocks, Bonds, etc, it should ask you if you have a carryover.

As for your Net Operating Loss in 2018, unless you file an election to "waive the carryback", that loss is carried BACK to 2013 (which you would need to amend in order to claim it).

[Anonymous]

sorry 2018 NOL 5 year carryback (CARES ACT) had to be filed by 6/30/2020.  did you file 2018 timely. 

Deadline Extended for Filing Refund Claims for 2018 NOLs
To claim a refund of taxes for an NOL carryback, taxpayers file a single tentative refund claim that covers all carryback years, or an amended return for each carryback year. Individuals file a tentative refund claim on Form 1045, Application for Tentative Refund. 

Many taxpayers prefer Form 1045 to process the refund request within 90 days. In addition, this form eliminates the burden of filing multiple amended returns to account for each carryback year if the NOL is not fully absorbed in the first carryback year.

so if you did not waive the carryback of the 2018, it would seem that now you can only carryback the NOL to 2016. 

if you want to waive the carryback period but didn't originally the IRS has granted relief

Late Waivers of 2018 and 2019 NOL Carryback Period
A taxpayer generally must file an election to waive an NOL carryback period by the due date, including extensions, of the income tax return for the year in which the NOL arose (Code Sec. 172(b)(3)). However, the IRS allows taxpayers to file late waivers for NOLs arising in tax years beginning in 2018 or 2019. The election must be made by the due date, including extensions, for filing the income tax return for the first tax year ending after March 27, 2020.

Filing Deadlines for Forms 1045 An application for tentative refund is generally due no later than the last day of the tax year following the tax year in which the NOL arose. By the time the CARES Act was enacted on March 27, 2020, this deadline had expired for the 2018 tax year in the case of calendar year taxpayers.

The IRS, however, responded by extending the deadline for six months for NOLs that arose in a tax year that began during 2018 and ended on or before June 30, 2019. This means calendar year taxpayers only had until June 30, 2020 to file a tentative refund claim for the 2018 tax year. A taxpayer taking advantage of the six-month extension should write “Notice 2020-26, Extension of Time to File Application for Tentative Carryback Adjustment” on the top of their Form 1045.

baring the 5 year 

[Critter-3]

I highly recommend you seek local professional assistance to get both the 2017 & 2018 returns correctly file and handle the NOL. 

[AmeliesUncle]

@Anonymous   

June 30th was the last day to file Form 1045 if you wanted to carry it back and avoid amending.   Because it is past that date, now the only options are (a) amend 2013  to carry it back or (b) file the election to "waive the carryback" by the due date of their 2020 tax return.

[jainygaurav]

Yeah..I did not use my capital loss 2017 and NOL for 2018. So, I am eligible for carry forward. I am small business owner which is funded by my own money.  I am losing money on my business for last 2 years which I am funding via my investment income and savings.

I am not looking to carry back. I am carrying forward those losses. 

Does that make sense?

[AmeliesUncle]

In order to NOT carry BACK the NOL, you need to file an election.   If you don't, the carryforward will be invalid.

[jainygaurav]

@AmeliesUncle 

* Since I was not required to file 2018 return with no income (I actually had NOL), can I file a 2018 tax return NOW with an election to "waive the carryback"?

* Then I will file the 2019 return using the carryforward loss since I elected to "waive the carryback" in a "about-to-be-filed" 2018 return? 

Note: For now, I am making the estimated payments without using the carryforward loss to get an extension until Oct 15, 2020. I am hoping to get the refund when I will finally file the 2019 return.

[jainygaurav · Accepted solution]

Hello,

When I read IRS Publication 536 for years 2017, 2018 & 2019, I have a better understanding.

"Waive the Carryback" was mandatory for NOL year 2017 & before because for NOL Year 2017, IRS pub 536 says:

"Generally, if you have an NOL for a tax year ending in 2017, you must carry back the entire amount of the NOL to the 2 tax years before the NOL year (the carryback period), and then carry forward any remaining NOL for up to 20 years after the NOL year (the carryforward period). You can, however, choose not to carry back an NOL and only carry it forward. See Waiving the Carryback Period, later. You cannot deduct any part of the NOL remaining after the 20-year carryforward period. NOL year. This is the year in which the NOL occurred."

But starting NOL year 2018, taxpayers were not even allowed to carryback except in certain situations like Farming Loss as the rule was abolished for NOL year 2018 because for NOL Year 2018, IRS pub 536 says:

"Generally, if you have an NOL for a tax year ending in 2018, you must carry the loss forward to future years. You may carry the losses forward indefinitely. NOL year. This is the year in which the NOL occurred. Exception to the No Carryback Rule Farming losses, defined next, qualify for a 2-year carryback period. Only the farming loss part of an NOL can be carried back 2 years."

The CARES act June 30, 2020 deadline for NOL year 2018 was introduced because carryback was disallowed for NOL year 2018 as explained above.