Loss Carry Back

[barosser]

I have never completed a loss carry back. I have two that I thought might help. Both had Tax liabilitites in 2005 but large business losses in 2006. When I go back to 2004 no help with these years. In 2005 where I attempted to reduce the Liabilites they get hit with AMT that it only makes a couple of hundred dollars difference. Does this sound typical or am I doing somthing wrong? (over 100,000 loss for each.

the 2006 has been filed for one. Can i change the election to forgo the Carry back and just go forward?

I asked similar question yesterday but couldn't find the post sorry if duplicated.

thanks in advance

[jainen]

>>large business losses<<

It is too late to forego the carryback for a net operating loss, if that is what you asking about. You might be able to shift some of the expenses to future. Look particularly at Section 179, other expensing, and depreciation method for new assets. Also look at prepaid expenses such as insurance and rent, whether income is allocated to the correct year, and any other timing issues.

Don't forget to mention to your client that you are available year-round for tax planning that might help this kind of thing.

Please add your personal thoughts to our ongoing discussion of whether AMT is fair.

[Maribeth]

"the 2006 has been filed for one. Can i change the election to forgo the Carry back and just go forward?"

There is a reg (301.?????) that indicates that you can make an election on an amended return as long as the amended return is filed within six months of the due date of a timely filed return. I know that this election covers §179 expensing and startup costs so I believe it would cover your NOL carryforward election.

If I'm wrong, someone please correct me!

Mary