topic Re: NOL Carryforward for Individuals - HELP in Deductions & credits

NOL Carryforward for Individuals - HELP

ElizabethP47 — Tue, 08 Oct 2024 17:33:41 GMT

Situation: I have a client that ran a trucking business for a number of years and in 2022 exited the business due to the economy. Once calculated, he has a $19k NOL Carryforward. During the time of trucking, he was single. In 2023 he got married and now will be filing jointly. In 2023 he worked only W-2 jobs.

According to 536, he can only claim 80% of the excess of taxable income computed without regards to the NOL. What does the publication mean by "excess"? I also understand that this computation can only be done on his income. not joint.
I just need help with this computation. Also, what is appropriate to attach as a statement that shows the facts of this NOL?

Thank you so very much, in advance, for anyone's help.

Re: NOL Carryforward for Individuals - HELP

Anonymous_ — Mon, 23 Dec 2024 16:48:10 GMT

Re: NOL Carryforward for Individuals - HELP

Anonymous_ — Mon, 23 Dec 2024 16:48:21 GMT

Re: NOL Carryforward for Individuals - HELP

ElizabethP47 — Tue, 08 Oct 2024 18:10:36 GMT

@Anonymous_ Yes, I understand. I do use ProSeries but I am trying to guide my client on how to do it on their own without stepping out of bounds with my tax preparer obligations. I need to understand the mechanics behind it myself before I go and try to explain it to anyone else.

Thank you for your help.

Re: NOL Carryforward for Individuals - HELP

Anonymous_ — Mon, 23 Dec 2024 16:48:34 GMT

Re: NOL Carryforward for Individuals - HELP

ElizabethP47 — Tue, 08 Oct 2024 18:21:46 GMT

I had no clue. Thank you!