Net Operating Losses Self-Study
Even the most profitable businesses experience loss and tax professionals need to know the provisions under §172, Net Operating Loss Deduction. This type of loss occurs when certain tax-deductible expenses exceed taxable revenues for a taxable year. Plus, the IRS analyzes a NOL under alternative minimum tax (AMT) rules. Without a basic understanding of net operating losses (NOL), tax professionals cannot provide their business clients with the best possible outcome. This course enhances a tax professional’s understanding of NOLS and alternative minimum tax NOLS (ATNOLs).
Upon completion of this course, you will be able to:
- Determine if a business or individual has incurred an NOL.
- Correctly calculate the amount of the NOL to maximize the amount to carry over or carry back.
- Identify the elections of carrying back and carrying forward the NOL.
- Identify the provisions of carrying back and carrying forward the NOL.
- Distinguish between business and nonbusiness income and losses in order to correctly calculate the NOL.
- Ensure the deadline for filing a carryback is met to provide the taxpayer the most flexibility in claiming an NOL deduction on Form 1045 or Form 1040X.
This course includes an e-book and exam questions to help you earn CPE. CPE is issued after the exam is successfully completed.