Comments on: Donald Trump’s Net Operating Loss Deduction

By: Steve

Steve — Mon, 29 Jan 2018 18:23:56 +0000

In reply to Bob.

You don’t get the full NOL for AMT purposes. You are limited to 90% of AMTI. But it should still work if you’re doing the calculations correctly.

I wonder if somewhere along the way, the tax software “lost” the AMT NOL carryforwards…

By: Bob

Bob — Sun, 28 Jan 2018 01:46:25 +0000

Good simple summary but I’m finding that the calculation of the ATNOLD seems to totally negate the use of the NOL . I unfortunately have a large NOLs from real estate losses suffered in the Great Recession . I was hoping the AMT for individuals would be repealed. But I’m stuck trying to use these NOLs before I die . I’m looking into converting my traditional IRA to a Roth to use the NOLs but it doesn’t seem to work due to the AMT! Help!

By: Mike

Mike — Fri, 25 Nov 2016 04:28:48 +0000

Hi Stephen,

Thanks for explaining the concept. Given that many projects within large businesses will take many years to come to fruition it actually makes sense that profitability could actually look like a rollercoaster track.

The IRS (and all tax authorities for that matter) need to define a time period during which they receive their revenue however need to be flexible in terms of flattening out the longer term.

By: Charles

Charles — Tue, 11 Oct 2016 21:47:27 +0000

What the media also fails to realize about the NOL is that DT had to lose $1 billion in real money in order to generate the large NOL deduction. What the media is not recognizing is that the NOL carryforward is just a deduction on page 1, Form 1040, and not a dollar for dollar credit. Assuming federal, state, and city taxes, totaling 50% at DT’s income level, the most that he can recover from his actual $1 billion dollar loss is $500 million. If he uses all of the NOL before they expire, he will still be out $500 million which even to DT is not an amount to sneeze at and as astute a businessman as DT is, losing $500 million of real money is not a tax planning technique that he would consider.