NOL carryover and S-corp election

Forum|Forum|5 years ago
July 24, 2020
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if I have a business NOL for 2020 is it possible for me to carryover that 2020 NOL to 2021 and then use the NOL to reduce my personal income tax liability if I file a form 2523 with the IRS to treat my C-corp as an S-corp? Or is this not allowed at all?

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since 2020 isn't over yet, is this really the year of the NOL if so you make an election on the 2020 return to forgo the NOL carryback period so the NOL can be carried forward to 2021. As long as the corp remains a C-Corp the NOL can be used. You talk about a C-Corp. electing S-Corp status. this throws a monkey wrench in your planning. The C-Corp NOL can't be used while the Corp is being taxed as an S-Corp. there can be other consequences of converting - consult a tax pro

M-MTax

form 2553......too late to make an s corp election that would go into effect for 2020.

Anonymous

Answer

janetc315

I know that if the C-Corp had an NOL of $(88,000) when it converted to an S-Corp, the NOL can no longer be carried forward. What happens if 3 years later...the S-Corp decides to Revoke its S-Corp Status, can the NOL that originally existed be reinstated an used by the C-Corp?