NOL Carryforward for C Corp

Forum|Forum|3 years ago
April 1, 2023
1 reply
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I have a C corp That I am doing taxes for.

In 2021, it incurred a 95K loss

In 2022, it incurred a 159K loss in bad debts and a earnings of 100K.

According to turbotax, I can only utilized 80K from 2021 for this year (80% of my earnings) and the remaining 15K is pushed forward to 2023.

As a new startup, I expected this but I am difficulty understanding how to use the NOL.

If I add the 159K of losses to 2022 this year, then my earning drop to -59K (loss)

Does the NOL of 95K (2021) + 59K then get carried forward to 2023?

Please advice, this is a bit confusing

Thanks

TurboTax Business Windows

Best answer by PatriciaV

Yes, your NOL carryovers are netted with your current year income to utilize as much of the prior loss as possible. The excess becomes your NOL carryover to next year.

PatriciaVAnswer

Employee

Yes, your NOL carryovers are netted with your current year income to utilize as much of the prior loss as possible. The excess becomes your NOL carryover to next year.

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