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Can you skip years in an NOL carryforward on Individual Return?

ellenp1314
Level 1

If the client has NOL carryforward but due to her keep changing preparer, some previous returns missing NOL carryforward information. Would it render all prior NOL invalid like with capital loss carryforward? TIA

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3 Comments 3
sjrcpa
Level 15

Neither the NOL nor capital loss carryforwards are necessarily invalid. Someone (you?) needs to compute the amount used up in those years when it wasn't shown on the returns. The rest, if any, is a valid carryforward.

Don't forget that recent NOLS have to be carried back 5 years unless an election was made to forego the carryback.

Your calculations may suggest that filing amended returns for past years could be beneficial to the client.

The more I know, the more I don't know.
ellenp1314
Level 1

Thank you for answering. For capital loss carryforward, I read from the post below that if you skip a year you will forfeit the carryover. I was wondering if it's the same for NOL.  post https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/do-not-need-carryover....

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sjrcpa
Level 15

I wouldn't take tax advice from a Turddohh, or any Intuit employee.

That post is wrong.

The more I know, the more I don't know.