Get maximum use from NOLs: a little bit of planning can bring great rewards.
Journal of Accountancy › Vol. 192 Nbr. 5, November 2001
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Summary
Net operating losses
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Get maximum use from NOLs: a little bit of planning can bring great rewards.
As a result of the current economic slowdown, many taxpayers who own and operate sole proprietorships, partnerships, limited liability companies and S corporations face the prospect of financial hardship. These tough times may result in business losses. Congress offers taxpayers who experience such losses some important tax relief. Under the Internal Revenue Code, taxpayers may carry back these losses and get a tax refund or carry them forward and reduce their future tax liability. CPAs who know the net operating loss (NOL) rules can maximize benefits for their individual taxpayer clients--many of whom are small-business owners.
This article analyzes the use of NOLs by individual taxpayers. It summarizes the ...See the full content of this document
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