Hello America !
New business starting in year 1.
1st year gross revenue is 2 million with taxable income of 93,000
2nd year gross revenue is 9 million with taxable income 563,000
3rd year gross revenue is 12 million with a loss of (1,439,000)
So now I am looking at years 1 and 2 and the corporate is a Small Business Corporation exempt from AMT
Year 3 the Corporation is no longer considered a SBC because average revenue for the years 1 and 2 (2 + 9 /2= 5.5) average exceeds 5 million.
So the NOL in years 3 is generated when the corp is subject to ALT MIN.
When I do the carryback of the year 3 loss to years 1 and 2, do I have to limit the NOL carryback to 90% of the AMTI for the tax years 1 and 2? Even though the corporation is exempt from AMT in years 1 and 2?
Do you have a reference to a good article or worksheet?
Thank you for your advise
Art Lander