Special rules also apply to real estate investment trusts (no carryback
), specified liability losses (10-year carryforward) and excess interest losses (no carryback
to any year preceding a corporate equity reduction transaction).
The limitation is computed on an "as if" basis--as if the federal tax liability were subject to the state NOL carryback
limitation noted above.
The five-year carryback
rules apply to NOLs generated in tax years ending after 2000.
Reject the proposal to decrease the carryback
period for net operating losses.
If a taxpayer makes the election to carry back an NOL to the fifth preceding year, the NOL carryback
is limited to 50% of the taxable income in the fifth preceding year.
1, 2015, the carryback
amount may not exceed 75 percent of the NOL.
Exhibit 2: ABC's taxable income (loss) after applying NOL carryback
Year Taxable Income NOL Carryback
Taxable Income After NOL Carryback
Even in high temperature environments, customers utilizing the product can eliminate common conveyor carryback
problems, such as conveyor belt misalignment or material build up.
However, the IRS counters that 2010 had an unusually high number of NOL carrybacks
because of a longer carryback
period temporarily allowed by the American Recovery and Reinvestment Act, P.
We developed this enhancement in direct response to requests for more precision and a longer-term view of carryback
claims," said David N.
provision offers small businesses that lost money in 2008 a way to quickly get some much needed cash if they were profitable in previous years.
For 2008 (not 2009), ARRA gives qualifying taxpayers the choice of carryback
up to five years for small businesses with gross receipts of $15 million or less, making the potential cash infusion even more powerful.