DISCLAIMER: This In Brief section offers a series of business, real estate, employment, estate planning and tax bulletins prepared by the attorneys at Fauver, Large, Archbald & Spray, LLP. This is not exhaustive, nor is it legal advice. You should discuss your particular situation with us or with your own attorney. Our legal representation is only undertaken through a written engagement letter and not by the distribution or use of this information.
Q: How do I sort out my net operating losses for tax purposes to eliminate gain – for 2018, California requires me to go back two previous years (amending those tax returns); the federal tax authorities under the Tax Cuts legislation says to only use such net operating losses against future income in future tax returns.
Well, you are now in luck! For 2019, and future years, California tax procedures involving net operating losses are now consistent with the federal approach. All net operating losses can be used in 2020 and subsequent tax years on both California and federal tax returns. So do your best to make profit and use these losses ………. And you don’t have to go backwards and refile returns for previous tax years.
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