NOLs are so bizarre (Post-2017 Net Operating Loss)
Posted: 1-Aug-2019 6:20pm
I've never liked working with NOLs, although having good software helps a lot.
So I have a client, recently widowed, with only about $25K AGI, including a few thousand net profit on Schedule C. And the itemized deductions are high enough to bring taxable income to zero, so only SE tax is owed on the return.
Yet, there is an NOL, despite the business activity being profitable. Why? The one-half Self Employment tax adjustment, of course. All of $155.
Now, me being lazy, can someone remind me what changed for NOLs under TCJA? My software identifies this as a carryover of "Post-2017 Net Operating Loss", so do we no longer need to elect to waive the carryback if we only want to carry forward, but we have to track potentially two different types of NOL carryforward?
So I have a client, recently widowed, with only about $25K AGI, including a few thousand net profit on Schedule C. And the itemized deductions are high enough to bring taxable income to zero, so only SE tax is owed on the return.
Yet, there is an NOL, despite the business activity being profitable. Why? The one-half Self Employment tax adjustment, of course. All of $155.
Now, me being lazy, can someone remind me what changed for NOLs under TCJA? My software identifies this as a carryover of "Post-2017 Net Operating Loss", so do we no longer need to elect to waive the carryback if we only want to carry forward, but we have to track potentially two different types of NOL carryforward?