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California now has NOL Carrybacks.

California law allows businesses, individuals, estates, trusts and exempt organization to use Net Operating Loss carryovers. NOLs generated in a taxable years beginning on or after Jan. 1, 2013, can be carried back two preceding taxable years. The law requires the "loss year" NOL amount back to the second taxable year before the loss year, and then any excess is back to the first preceding taxable year. Any loss not applied in the two preceding years is carried forward.

At first, the allowable NOL carryback percentage will vary. For an NOL incurred in a taxable year beginning on or after:

* Jan. 1,2013, and before Jan. 1,2014, the carryback amount may not exceed 50 percent of the NOL.

* Jan. 1, 2014, and before Jan. 1, 2015, the carryback amount may not exceed 75 percent of the NOL.

* Jan. 1, 2015, and after the carryback amount is 100 percent of the NOL.

Learn more at www.calcpa.orgicarryback.

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Title Annotation:news; net operating loss
Publication:California CPA
Article Type:Brief article
Geographic Code:1U9CA
Date:Mar 1, 2014
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