What are the Net Operating Loss Carryback Features for 2009?
What are the Net Operating Loss Carryback Features for 2009? The I.R.S. permits eligible small businesses who have a net operating loss in one year to carry back that capital loss to previous years of profit, in order to offset the profit with the loss and receive a tax refund for the previous years.Answer: A new tax provision under the stimulus act extends the operating loss carry back period to five years from the usual two years, for eligible small businesses. An “eligible small business,” for this purpose, is a corporation or partnership that meets the gross receipts test of Internal Revenue Code Sec. 448(c) for the tax year of the loss (using $15 million instead of $5 million), or a sole proprietorship that would meet that test if the proprietorship were a corporation. In other words, a business is eligible if it conducted business as a c
Related Questions
- If I carried back a net operating loss two years for federal purposes, am I required to carryback the net operating loss two years for Mississippi purposes?
- If I am filing an amended Mississippi return to carryback a Mississippi net operating loss, what documentation should I include?
- What is an "Eligible Small Business" For Net Operating Loss Carryback Purposes?
