- quote -

You always use them in the order created. That is FIFO, or
Fiirst in First out. The earliest NOLs are used first and
then succeeding ones.

Each carryover is used against the type of income.So, if you
have no alt min tyaxable income, you will not use any of the
carryover.

Bruce Raskin, CPA
Small Business and Individual Tax and Accounting Services

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agnole[at]yahoo.com (CGS) wrote:

- quote -

It's not pick and choose -it is earliest first.

That said, it is entirely possible to have a mix and match
situation: If your earliest regular NOL carryforward is from
1997 and 1998 and you have no AMT NOL until 2001, then you
could very well use the 1997/1998 regular NOL with the 2001
AMT NOL for AMT purposes. You have to look at regular and
AMT as two parallel systems, each with there own resultant
NOL carryforwards and carrybacks.

With respect to the 100% losses available from 2001 and
2002, I would apply the same treatment: Use the earliest
loss first to offset 90%, then take the remaining 10% out of
the 2001/2002 loss. However, this is a logical construction
and I have not researched to see this is specifically
disallowed. (I have done successful NOL carrybacks that
involved no regular NOL, only AMT NOL's.)

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I am having a discussion w/ a lawyer about the use on
carryovers of NOL's. Can you use your c/o's from different
years from lastest to earliest or do you always "use up" the
earliest NOL c/o's first?

This is an issue when Alt Min NOL deduction is limited to
90% of AMTI for years other than 2001 & 2002. From my
understanding, there was no 90% rule for NOLs created in
2001 or 2002. For the 2003 Tax Year, if I use the 1997 &
1998 NOL C/F, I have Alt Min Tax, if I use the 2001 NOL C/F
I have no Alt Min Tax, according to this attorney...

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