Carryback No Longer Allowed

December 27, 2018

Most taxpayers no longer have the option to carryback a net operating loss (NOL). For most taxpayers, NOLs arising in tax years ending after 2017 can only be carried forward. The 2-year carryback rule in effect before 2018, generally, does not apply to NOLs arising in tax years ending after December 31, 2017. Exceptions apply to certain farming losses and NOLs of insurance companies other than a life insurance company. Also, for losses arising in taxable years beginning after Dec. 31, 2017, the net operating loss deduction is limited to 80% of taxable income (determined without regard to the deduction).

 

 

 

Learn More:

 

https://www.irs.gov/newsroom/irs-issues-guidance-on-changes-to-excess-business-and-net-operating-losses


https://www.irs.gov/newsroom/tax-reform-changes-the-rules-about-net-operating-losses

Please reload

Featured Posts

Everyone in business must keep records. Keeping good records is very important to your business. Good records will help you do the following:

  • Monit...

Why Should I Keep Records?

December 27, 2018

1/8
Please reload

Recent Posts

December 19, 2017

January 23, 2017

Please reload

Archive