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Farm NOL Carryback

Level 1

I have a client that has farm NOLs for 2021 and 2020. This same client had a 12million dollar section 1231 gain in 2019. I believe there is an exception that allows 2 year carryback on farm NOLs. If anyone can help answer any or all of my questions below, that would be a great help! Thank you in advanced for any input!

• Is it true we can carry back 2021 and 2020 farm NOLs to 2019 to help offset section 1231 gain originally reported?
• What would be the best way to go about applying the NOL – Form 1045 or Amended 1040?
• Are there any ordering rules or a tracing method that we need to do to calculate the portion attributable to the farm NOL?
• Are there any other limitations or considerations we need to consider?

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1 Comment 1
Level 15

 It may be too late for Form 1045. That needs to be filed within 12 months after the NOL year. (December 31, 2022 for 2021 NOL, 12/31/21 for 2020 NOL.