Can I skip or take a portion allowed NOL forward for this year and forward the remaining to future years?

Forum|Forum|2 years ago
September 18, 2023
2 replies
31 views

My new client had NOL carry forward from 2020 (NOL ) to 2022 $18k (Only one NOL item)

This year 2022 taxpayer has large income. We are able to deduct NOL carry forward from 2020 $18k . But she prefers to not deduct NOL carry forward from 2020 to have a look good net income for mortgage loan and buy house purpose

Can we skip NOL carry forward for this year and forward to next /future years instead?

Public 536 has not addressed this "SKIP " OR "USED IT OR FORFEIT". Only address after 12/31/2017 NOL carry forward indefinitely and 80% limit rules

Please any expert or any one give me an advise

Thanks in advanced

ProSeries Professional

This topic has been closed for replies.

Best answer by Just-Lisa-Now-

No, you cant pick and choose when to use it. But I think the underwriter "may" look past an NOL for income purposes on a loan since it doesnt really give an actual representation of the income for the year.

Just-Lisa-Now-

Answer

Intuit Community Champion

No, you cant pick and choose when to use it. But I think the underwriter "may" look past an NOL for income purposes on a loan since it doesnt really give an actual representation of the income for the year.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

BobKamman

Level 15

@Just-Lisa-Now- As my mother would say, underwriters don't have the common sense that God gave a goose. If they were trusted to exercise any judgment, they could make more money doing quality control at the pickle factory.

T

TaxGuyBill

Level 15

@Mybesttaxservice wrote:

My new client had NOL carry forward from 2020 (NOL )

As a side note ... You probably already checked this, but just in case you didn't think about it ... Are you SURE there is a NOL carry forward?

Originally, 2020 automatically carried forward. Then Congress retroactively changed the law that made it carry back. So have you checked if your client filed the election to "waive the carryback", so that it carried forward? If I remember correctly, due to the retroactive nature of it, the election to "waive the carryback" could be on either the 2020 or 2021 return (although I would need to look that up to be sure).

Again, you may have already checked that, but I thought I would mention it in case you forgot about it.

sjrcpa

Level 15

Ans if it was a carryforward from 2020, what happened in 2021?

The more I know the more I don’t know.

M

MybesttaxserviceAuthor

Level 5

Thank you sjrcpa

Yes 2021 was used up some of 2020 NOL . This is remaining NOL of 2020 only carry forward . Thank you your time and help

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