Question

NOL carryover from 2017: Do I have to use it in my 2018 declaration even if I would owe no tax without it?

Forum|Forum|7 years ago
June 6, 2019
1 reply
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I have a NOL to carry over from 2017. I relinquished any carryback. Even without using the loss in my 2018 declaration, I have zero federal tax liability for the 2018 tax year. Do I have to enter the loss on my 2018 declaration, or can I wait and use it later in a year when I may otherwise have to pay federal tax?

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MichaelL1

Employee

You have to enter the NOL on the 2018 to able to determine how much if any will go to the 2019 return.

If you don't claim it on the 2018 you will have no carry-forward to 2019.

Odds are some of the NOL will be reduced but if large enough then you can still carryover some to 2019.

J

jojokrikriAuthor

I tried it, and it absorbs all of it, and yet there's no benefit because the tax was already 0. Do you happen to have a reference in the tax code or IRS literature that says we have to take it the very next year whether it helps or not?