What is an “Eligible Small Business” For Net Operating Loss Carryback Purposes?
What is an “Eligible Small Business” For Net Operating Loss Carryback Purposes?For tax years 2008 and 2009, eligible small businesses are able to carry back net operating losses for 3, 4, or 5 years, an increase over the previous IRS limits of two years. This means that the business may be eligible for tax refunds for those years. So, what is an “eligible small business?”Answer: For the purpose of determining eligibility for increased operating loss carry back tax savings, an “eligible small business” 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 corporation, partnership, or sole proprietorship and if its average annual gross receipts, as modified for the three years ending with the tax year before
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 are the Net Operating Loss Carryback Features for 2009?
