Today TaxMama hears from Judy in Washington state, with this question. “Could you please tell me how long a 1995 net operating loss can be carried forward?”
Did you know that IRS has an entire publication about Net Operating Losses? Yup, Publication 536 .
Using the index to find “carryover”, it says you can carry the loss forward for up to 20 years.
However, that reference specifies that it relates to losses in 2008.
A look at page 2 of the instructions to the 1995 version of Form 1045, however, tells us that in 1995, the NOL carryforward was only 15 years.
Of course, states may have different carryforward limits. Fortunately, Washington state doesn’t have taxes at all, so it’s not an issue for Judy.
And remember, you can find answers to all kinds of questions about net operating losses and other tax issues, free. Where? Where else? At TaxMama.com.[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the subscribe link and join us.]
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- IRS Publication 536 :: Net Operating Losses
- IRS Publication 536, Chapter 2 :: Carryforward limitation
- IRS Form 1045 for 1995 :: Read the instructions