- quote -

Thanks Ben, upon review of the actual facts, what should
this person file in 2005 assuming the following:

1. NOL of ($16,963) in 2004 carry back 2 years,

the following occur on form 1040:

2. 2002 - ln. 41 $4520 - taxable income, tax - $453, ln. 50
$453 Child Tax Credit - so FIT payable = $0

3. 2003 - ln. 40 $0 - taxable income

4. 2005 - ln. 43 $0 - taxable income

In 2005, must a 1045 be filed using $4520 of the NOL?
In 2006, assuming $0 taxable income again, does a 1045 need
to be filed just to keep the NOL in play?

Thanks again for the help.

--
- Buddy

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Buddy" <why.wood.yew[at]bother.com> wrote:

- quote -

An nol carryback will not get you any se tax paid. Only
income tax paid can be refunded on a carryback. If there is
no income to carry back to, then you carry forward. Be sure
to document your file, if this is the case.

--
This written advice was not intended or
written to be used, and it cannot be
used by any taxpayer, for the purpose
of avoiding penalties that may be
imposed on the taxpayer.
(The foregoing legend has been affixed
pursuant to U.S. Treasury Regulations
governing tax practice.)

<<< Benjamin Yazersky CPA [NJ & NY] > > ---> real address on hobokenx or hobokeni <---

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I have several questions about what to do with a NOL for a
self-employed individual. First, an election to waive the
carry back was not filed. The NOL was created in 2004. So
carry backs must first go to 2002, then 2003 and so on. In
2002, I owed no FIT, but did owe self-employment taxes. If
no FIT was due in 2002, but the AGI was positive, do I have
to use the NOL to bring the AGI to -0- in 2002?

Additionally, does a form 1045 need to be filed as long as
there is a NOL balance carried forward (as in filing a Sch.
D for Capital losses carried forward in years there were no
capital gains?)

Hope that was partly clear and TIA.

--
- Buddy

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >