carryback

(redirected from Net Operating Loss Carryback)
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carryback

n. in taxation accounting, using a current tax year's deductions, business losses or credits to refigure and amend a previously filed tax return to reduce the tax liability. (See: carryover)

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All the news isn't good: Net operating loss carryback provisions have been eliminated.
A corporation that expects a net operating loss in the 2016 taxable year can file form FTB 3593, Extension of Time for Payment of Taxes by a Corporation Expecting a Net Operating Loss Carryback, to extend the time for payment of tax for the 2015 taxable year.
6511(d) (2) (A) provides that [i]f the claim for credit or refund relates to an overpayment attributable to a net operating loss carryback or a capital loss carryback, in lieu of the 3-year period of limitation prescribed in subsection (a), the period shall be that period which ends 3 years after the time prescribed by law for filing the return (including extensions thereof) for the taxable year of the net operating loss or net capital loss which results in such carryback, or the period prescribed in subsection (c) in respect of such taxable year, whichever expires later.
It also provides a five-year net operating loss carryback for qualified natural disaster losses.
* Extension of net operating loss carryback. The net operating loss (NOL) carryback period is extended from two to five years for losses attributable to repair of existing investment damaged by Hurricane Katrina; business casualty losses due to Hurricane Katrina; moving expenses and temporary housing expense for employees working in areas damaged by Hurricane Katrina; losses created due to claiming the 50 percent bonus depreciation on assets placed in service within the GO Zone.
So does extending the net operating loss carryback period from the current two years to five years.
However, the deduction is limited to 30% of the individual's adjusted gross income without regard to any net operating loss carryback ("contribution base").
Therefore, casualty or theft losses that an individual sustains after December 31, 2007, are considered losses from a "sole proprietorship," and the individual may elect either a three-, four-, or five-year net operating loss carryback for a loss that is an applicable 2008 operating loss, provided the $15 million gross receipts test is satisfied.
Lengthen the Net Operating Loss Carryback Period to Five Years
170(b)(1)(A), an individual's annual itemized deduction for cash contributions to public charities cannot exceed 50 percent of the individual's contribution base (adjusted gross income, without any net operating loss carryback).
* Enlarges the net operating loss carryback period from two years to five and waives alternative minimum tax depreciation.

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