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| Tax Tips: Get A Tax Refund For Your 2008 Business Loss |
Nila Rakhit, CPA
04/14/2009
Get a tax refund for your 2008 business loss
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Small businesses that had an operating loss in 2008 now have more options for carrying that loss back to prior tax years to get a tax refund.
The "American Recovery and Reinvestment Act of 2009" allows some businesses with a net operating loss (NOL) in 2008 to elect to carry the loss back for up to five prior years. To qualify, a business must have no more than an average of $15 million per year in gross receipts over the three-year period ending with the year of the NOL. If sales are higher than that, your business must live with the old two-year carry back rules.
There are special rules if your business does not operate on a calendar year. If your business operates on a fiscal year, you will have the option of using the five-year carry back for the loss that occurred in the tax year that ended in 2008 or the one that starts in 2008 and ends in 2009.
If you like, you can forgo the five-year carry back and carry your losses forward for up to twenty years. Keep in mind that the election cannot be revoked once filed.
For assistance in filing for an NOL refund, contact our office at 617.678.4021.
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