This is just a friendly reminder that if your business or client has a federal net operating loss (NOL), do not assume the same carryback or carryforward rules apply at the state level.
Not only does each state have different NOL carryback and carryforward rules, but there are different rules for the type of entity involved (C corporation, S corporation, partnership, trusts, individuals, etc.).
For example, just because a state has a NOL carryback of 2 years, and a carryforward of 20 years for C corporations, does not mean the same rules apply to trusts or individuals.
For some entities, there could be no carryback allowed. Other entities or individuals could be allowed a carryback.
MORAL of the STORY
Do not assume anything. Look it up or consult a state tax professional (me) at leveragesalt@earthlink.net.
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