The Twelve Days of Taxmas – Net Operating Loss
As Christmas approaches, Klatzkin is putting a twist on a holiday classic. But rather than filling your head with drummers drumming and golden rings, we’re focused on providing important tax insights through “The Twelve Days of Taxmas” blog series that could help minimize your tax liability. So without further ado…
On the first day of Taxmas, my accountant gave to me – temporary Net Operating Loss (NOL) rules.
NOL’s which were incurred in 2018, 2019, and 2020 can be carried back five years before being carried forward. This will allow my business to realize potential tax savings in years before the enactment of the Tax Cuts and Jobs Act when the corporate and individual tax rates were higher. Also, the CARES Act allows for 100% of income to be offset by the NOL instead of 80%.
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©2020 Klatzkin & Company LLP. The above represents our best understanding and interpretation of the material covered as of this post’s date and should not be construed as accounting, tax, or financial advice. Please consult your tax advisor concerning your specific situation.