NOL Carryback Calculations

Could A Carryback Benefit Your Companies Net Operating Income?

The Tax Cuts and Jobs Act (TCJA) and the CARES Act made changes to the ability to either carryback or carryforward Net Operating Losses (NOLS). NOLs were first modified under the TCJA to no longer be allowed to be carried back (pre-TCJA, you were allowed to carry back a loss two years and forward 20). However, the CARES Act is allowing for any losses incurred in tax years 2018-2020 to be carried back five years.

Reviewing loss positions as well as prior year returns when tax rates were most likely higher could provide a sizable benefit and refund prior taxes paid. It is important to consider the potential benefit of carrying back a loss as opposed to carrying it forward. Consultations and modeling should be completed by your tax advisor.

By carrying back losses to higher tax rate years, you could receive a permanent tax benefit by taking advantage of this short-lived provision.

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Julie Helms, CPA | Director, Specialty Tax Services

The Lurie Difference: A Streamlined Process

Lurie’s Specialty Tax Services advisors offer unique tax savings and reduction strategies for businesses and their tax concerns. The team works closely with you and your service partners to provide counsel and execution on matters that extend far beyond compliance. This close collaboration provides not only coordinated, seamless service with specialists who have deep expertise, but also delivers true dollar cost savings. Here is what to expect: 

We Examine Your Indicators

Have generated an NOL in 2018, 2019, or 2020 that may be carried back under the CARES Act provisions

We Help You Uncover Benefits

Comprehensive analysis of the interplay between the NOL carryback provisions and other opportunities to maximize the benefit available

Questions? Let's start a conversation.

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