Net Operating Losses - Making the Right Choice

The computing and reporting of net operating losses can be very complex. Taxpayers can make elections to either carry back their losses or to carry them forward to future years. Before they decide, they need answers to some questions:

  • What is the carryback period, and will there be a tax savings?
  • Is there a tax benefit to carrying the losses forward to more profitable future years?
  • Should losses be claimed on a Form 1045 or an amended return?
  • What adjustments must be made in order to calculate the allowable tax refunds?
  • Does the taxpayer know about all of the choices?

This program will provide an excellent overview of net operating loss (NOL) requirements and pitfalls.

Topics covered:

  • History of the NOL
  • Carryback or carryforward – making the correct election
  • Form 1045 or amended return
  • Net operating losses for individuals
  • Non-business deductions
  • Non-business income
  • Non-business capital losses
  • Impact on IRA deductions, Social Security taxation, educational deductions, casualty losses, and medical expenses
  • Exceptions to 2-year carryback requirements
  • Disasters
  • Farm losses
  • How to claim and compute the deduction
  • Deducting a carryback
  • Deducting a carryforward
  • Change in marital status
  • Change in filing status
  • Flow-through entities – limitation of losses
  • IRC section 382 limitation – ownership changes
  • Impact of debt forgiveness on NOLs
  • Form 1138 – extensions for filing
  • Form 1139 – Trusts, estates, and corporations – the “quick refund"

Who should attend:

Any tax practitioner involved in the planning and preparation of tax returns where a net operating loss could be claimed.

Learning objectives:

  • Identify how to compute both net operating loss carrybacks and carryforwards.
  • Avoid costly mistakes in tax planning.
  • Prepare the various forms that are required to claim a net operating loss.

IRS CE: 2 Hours/Federal Tax Law
NASBA CE: 2 Hours/Taxes

Presented by Stuart Sobel

NSA ConnectED Webinar Series
Program Level: Basic
Prerequisites: None
Advance Preparation: None
Delivery Method: QAS Self-Study

No refunds or exchanges for cancellations. For more information regarding refund, complaint and/or program cancellation policies, please contact NSA toll-free at 800-966-6679.

NSA is approved by NASBA, the IRS, ACAT, and CTEC as a provider of continuing professional education.

The National Society of Accountants is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org.

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NSA has been approved by the California Tax Education Council to offer the above courses to go towards the annual "continuing education" requirement imposed by the state of California. A listing of additional requirements to register as a tax preparer may be obtained by contacting CTEC at P.O. Box 2890, Sacramento, CA, 95812-2890, by phone at (877) 850-2832, or on the Internet at www.ctec.com.

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Stuart Sobel

Stuart “Stu” Sobel

Stuart “Stu” Sobel combines an in-depth knowledge of taxation and nonprofits with an ability to communicate clearly. A dynamic speaker, Stu seeks to help people understand the very complex world of taxation in every day terms.

And he's just the person to do it — Stu has been in the industry for 48 years. He worked in examination and high level positions at the IRS for 30 years. Following that, Stu spent nine years as the producer and host of his own nationally syndicated radio program called Wise Choices: Taxes and Charity Today. He also ran his own tax and nonprofit consulting firm for 12 years (Stuart Sobel Consulting, Inc.). He has helped create over 2,500 nonprofit organizations worldwide. His expertise on the topic of nonprofit taxation has earned him the title “The Guru of Giving.”

Stu started teaching when he was at the IRS in 1969. After retiring in 1999, he expanded his teaching role while also running Stuart Sobel Consulting. Since retiring from his consulting firm, he's focused on teaching full time. He explains real taxation situations instead of abstract ideas. He has taught at Indiana University and also provided continuing professional education to more than 40,000 CPAs, Attorneys, Enrolled Agents, and nonprofit staff members/directors.

He's written four books on taxation and nonprofit issues, which have been licensed to numerous CPE and CLE providers and used to train more than 25,000 CPAs and tax professionals. Tax Media Network has an extensive library of webcasts that are broadcast worldwide in conjunction with numerous CPE providers.

Stu's areas of expertise include tax planning, business creation, tax-exempt filing, strategic planning, charitable giving, employee benefits, and tax controversy. He has worked with thousands of diverse businesses and nonprofit organizations including public charities and trade associations worldwide.

Stu has been retained by CPA firms and law firms to represent them in their own IRS tax controversy issues.