Trying to confirm NOL Carryforward works differently than Cap Loss Carryforward when TP has minimal income.
Simple example:
2023 TP business income = $15,000
TP is 65 yr old single, std ded = $15,700
2022 TP NOL carryforward = $20,000
NOL deduction limited to 80% of income = $12,000
So AGI = $3000 and taxable income = 0
But taxable income would've been 0 even without the NOL.
So does the NOL carryforward for 2024 = $8,000?
Or does the NOL carryforward stay at $20,000 (like an unneeded Cap Loss carryforward)?
Hope that makes sense. Thanks for any clarification.
In case anyone is bored today ... any thoughts on the NOL situation?
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