Nobody wants their business to generate a net operating loss (NOL).
But if your business is showing an NOL, Congress is currently offering some significant help.
You see, when the Tax Cuts and Jobs Act (TCJA) was enacted, it took away your ability to get an immediate cash benefit from your NOL.
But the law has just changed!
Due to the COVID-19 pandemic, Congress has temporarily restored your ability to get an almost instant benefit from your NOL.
We’ll show you how to take advantage of big changes in the law when you read my new article titled Tax Tips: Quick Cash: COVID-19 CARES Act Creates Five-Year NOL Carryback.
Three ways our fact-filled article can help you:
- We’ll explain the old NOL rules. Prior to tax-year 2017, you could carry back your NOL for two years and carry it forward for 20 years. What’s more, your NOL could offset up to 100% of your taxable income. That was helpful. Then the TCJA made significant changes to the law that delayed your ability to get tax savings from your business losses. We’ll tell you the whole sad story when you read the full article.
- We’ll explain the new temporary NOL rules. The CARES Act, recently passed by Congress, suspends the TCJA limitation on your NOLs for the tax-years beginning in 2018, 2019, and 2020.
This means (under new rules) you can carry back your NOL
for five years and carry it forward indefinably!
What’s more, you can apply 100% of the loss. You’ll learn how to benefit from the new laws when you read the full article.
- We’ll tell you how to claim your refund. The best way to claim your refund from an NOL carryback is to use the “tentative” refund procedure. You do this by filing one of two IRS forms. (We’ll tell you what they are.) If you qualify to claim your refund, you’ll be able to take advantage of two huge benefits. You’ll learn what they are when you read the full article.