Any Option to Apply Partial or No NOL Carryforward to Current Tax Year?

Say you have a substantial net operating loss (NOL) carryforward for your Federal 1040 and you have only very small amount of income to take against that NOL carryforward in the current tax year. Is there any option to apply only a partial amount of NOL carryforward to the current year and then continue to carry the remaining loss forward? The idea here is that small amounts of income in the current year are in a lower tax bracket. It might be smarter to take the NOL forward to a year with substantial income, so that it is being used to lower your overall tax bracket and has impact in the higher margins of income.

nish

Reply to
nish
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The amount you can carry forward to any year is the original NOL less any allowed or allowable losses taked in prior years. Therfore you either use it or lose it.

Reply to
Haskel LaPort

I think Nish is asking if you can elect to use on a portion of the carryforward. Example: if the carryforward is 10k, and his income this year is 30k he can use up all of the carryforward, but it would be more useful to do it next year when his income is expected to be

150k, in which case the 10k deduction is worth more. I think the answer to this is no, you can elect how much of the NOL to deduct.
Reply to
removeps-groups

Typo. Should have been "you can't elect how much of the NOL to deduct".

Reply to
removeps-groups

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