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#1
11-29-2004, 04:12 PM
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 Re: NOL carryover and death of spouse - quote - > > Husband and wife were married in 1980, filed a joint return.
Yes, I'm filing a 1041 for the rental income from the land.> > Husband had an NOL carryover to 1980 from his farming > > operation, but the NOL carryover to that year was reduced to > > zero due to forgiveness of debt (reduction of tax > > attributes). Husband died in 2003. The farm land was sold in > > 2004, and the 1980 debt cancellation must now be repaid > > based on a prior shared appreciation agreement. Normally > > this repayment would result in restoration of prior tax > > attributes given up (the NOL). > > > Question: since the wife files as single in 2004, does she > > loose the restored NOL deduction from 1980, since it belongs > > to the husband? IRS Pub 536 says only the spouse who had the > > loss can take the deduction, but it seems unfair she has to > > recapture the cancelled debt as income without restoration > > of tax attributes. > Had you considered using Form 1041 to deal with the tax > issues of the decedent??? I don't think the restoration of the NOL goes on the 1041. Normally NOL's, capital loss carrovers and the like die with the decedent. The perplexing part is, this is not your usual NOL carryover. It is a restoration of an NOL from a prior tax attribute given up. I really need an answer to this problem. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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11-24-2004, 10:39 AM
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| Re: NOL carryover and death of spouse - quote - > Husband and wife were married in 1980, filed a joint return.
Had you considered using Form 1041 to deal with the tax> Husband had an NOL carryover to 1980 from his farming > operation, but the NOL carryover to that year was reduced to > zero due to forgiveness of debt (reduction of tax > attributes). Husband died in 2003. The farm land was sold in > 2004, and the 1980 debt cancellation must now be repaid > based on a prior shared appreciation agreement. Normally > this repayment would result in restoration of prior tax > attributes given up (the NOL). > Question: since the wife files as single in 2004, does she > loose the restored NOL deduction from 1980, since it belongs > to the husband? IRS Pub 536 says only the spouse who had the > loss can take the deduction, but it seems unfair she has to > recapture the cancelled debt as income without restoration > of tax attributes. issues of the decedent??? "Jack" - John H. Fisher - TaxService[at]aol.com Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html Where Ignorance is bliss, 'tis folly to be wise!=  << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
11-23-2004, 04:56 PM
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| NOL carryover and death of spouse Husband and wife were married in 1980, filed a joint return. Husband had an NOL carryover to 1980 from his farming operation, but the NOL carryover to that year was reduced to zero due to forgiveness of debt (reduction of tax attributes). Husband died in 2003. The farm land was sold in 2004, and the 1980 debt cancellation must now be repaid based on a prior shared appreciation agreement. Normally this repayment would result in restoration of prior tax attributes given up (the NOL). Question: since the wife files as single in 2004, does she loose the restored NOL deduction from 1980, since it belongs to the husband? IRS Pub 536 says only the spouse who had the loss can take the deduction, but it seems unfair she has to recapture the cancelled debt as income without restoration of tax attributes. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| carryover, death, nol, spouse |
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