Net Operating Losses Self-Study

Summary

The goal of every business is to make a profit, but losses still occur. The provisions under §172, Net Operating Loss Deduction, are important because tax professionals increasingly find themselves working with clients who are incurring net operating losses (NOLs). Without a basic understanding of NOLs, tax professionals cannot provide their clients with the best possible tax outcome. In addition to NOLs, the IRS analyzes an NOL under alternative minimum tax rules. This course enhances the tax professional’s understanding of NOLs and alternative minimum tax NOLs (ATNOLs).

Objectives

Upon completion of this course, you will be able to:

• Determine if a business or individual has incurred an NOL
• Calculate the amount of the NOL to maximize the amount to carryover
• Identify when a taxpayer is eligible to make an election to carryover an NOL
• Identify the provisions of carrying forward the NOL
• Distinguish between business and nonbusiness income and losses in order to correctly calculate the NOL
• Define excess business losses
• Correctly calculate an ATNOL while considering AMT adjustments and preferences
• Determine the remaining ATNOL after utilization in intervening years with accuracy and compliance with AMT rules
• Compute the NOL deduction for each taxpayer when there is a filing status change

Course Details

This course includes an e-book and exam questions to help you earn CPE. CPE is issued after the exam is successfully completed.