What if an NOL was generated on the original return, would a taxpayer amend all amended returns and Form 1045?
Response: If a taxpayer properly claimed a casualty loss deduction and in a later year receives reimbursement for the loss, the taxpayer reports the amount of the reimbursement in gross income in the tax year it is received to the extent the casualty loss deduction reduced the taxpayer’s income tax in the tax year in which the taxpayer reported the casualty loss deduction or in a carryback year. This question is addressed on pages 5-7 of Publication 547, Casualties, Disasters, and Thefts in the section entitled “Insurance and Other Reimbursements.” A homeowner who claimed a casualty loss deduction for damage from hurricane Katrina, Rita, or Wilma, carried back the loss as an NOL to prior taxable years, and received a grant such as a Road Home grant in a later tax year as reimbursement for the loss, may choose to amend the tax returns to which the loss was carried back to reduce the loss by the amount of the grant received, as a result of the change in the tax law described above.
Related Questions
- How do I amend my Form 13F filing if certain reportable securities were not listed on my original, public Form 13F filing?
- What if an NOL was generated on the original return, would a taxpayer amend all amended returns and Form 1045?
- When is a disregarded entity required to amend the Montana disregarded entity information return, Form DER-1?
