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Article: Increased carryback period for 2001 and 2002 NOLs. (Financial Planning Tax Tactics).(Statistical Data Included)
- Article from:
- Accounting Today
- Article date:
- April 22, 2002
- Author:
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For taxable years ending in 001 and 2002, the Job Creation and Worker Assistance Act of 2002 extended the carryback period for net operating losses to five years.
Before the Act, the carryback period was generally two years but was three years for certain eligible losses, such as casualty losses of individuals and certain losses attributable to a presidential declared disaster. However, under both pre- and post-act law, a taxpayer may elect to forgo carrying back an NOL.
Recommendation: A taxpayer should consider waiving the carryback if it doesn't need an immediate refund, and if carrying forward the loss will result in greater tax savings. There would ...