Net Operating Loss (Carrybacks and Carryforwards) in Financial Accounting

[@angelokishmish6706]

this channel is a goldmine! everything is explained better than my university class. You're a real example of why youtube is so amazing

[@Edspira]

Thank you for the kind words my friend!

[@Anna-yj5jo]

I cannot thank you ENOUGH for all these insightful videos. You explain it way better than my $2000+ CPA package. -From a non-accounting major studying for CPA test. Thank you, thank you, thank you.

[@Edspira]

Thank you for the kind words. I hope you pass the CPA exam, good luck!

[@angelokishmish6706]

had no idea non-accounting majors take the cpa exam

[@chow902]

IDK if you ever just have sad days and come check out your comment section. You're just amazing for what you are doing.

[@AsherSax]

Note: The 2017 tax bill eliminated the 2-year carry back. It's just a carry forward now.

[@atheneus]

CARES Act delayed that to 2021. File your losses now!

[@xuando5895]

It's 5 Years, isn't it

[@davidzielinski258]

Don't forget that in future years, if you post a profit, you can only offset 80% of that income if you are carrying forward an NOL due to the TCJA

[@kermit939]

I'm from France and you explain things better than french boring videos on the subject. Thanks !

[@spencerarts3290]

You have saved my butt studying for exams countless times! No amount of thanks is sufficient!

[@starly01]

I learned more in 4 minutes of this video than 2 hours in class tyvm for making this concept simple

[@dailydoobies4209]

You explain literally everything better (more clearly) than most of the teachers I have ever had and I have been to school 3 years at University of Delaware and 3 years at Rutgers Business School-Newark....two semi good schools. Thank you...you are going to make me pass my Intermediate 2 Accounting class.

[@tjfrank3571]

I feel like Saul Goodman is teaching me accounting

[@gabycardenas5884]

You are a LIFE-SAVER! Thank you so much for these videos, you're definitely making accounting for income taxes a little easier to swallow

[@SubhashChandraDey-h2m]

Thank you so much for the lucid explanations. Effective 2018 TCJA (Tax Cuts & Jobs Act), allowed indefinite carry-forward (but no carry-back)

[@chantel2689]

Your videos never fail to amaze me. Once again I understand! Love your videos, keep up the great work! 👑

[@Edspira]

Wow, thank you!

[@khloekoko9496]

Your a blessing! In doing my acca and your honestly the only person I understand! Thank you!

[@Edspira]

Glad to help. Thanks for watching!

[@addisonbaker9718]

For anyone watching recently, know that the rules have changed. NOLs arising in tax years after 2017 can be carried forward indefinitely, but can only offset a maximum of 80% of taxable income in any given year.

[@anocri]

But can be carried forward and offset 100% against taxable income of the years 2018-20.

[@kyliekamm-pj1ou]

Thank you so much for the videos. I am having trouble understanding my professor who teaches this because he only teaches from the book and doesn’t do many (if any) in class examples

[@joshcarson4408]

This dude is the best

[@Edspira]

😀

[@florencengwele5270]

Thank you for your videos. Clear explanations helped me a lot with my online study.

[@josephdecker5660]

You may want to update this - Net Operating Losses cannot be carried back anymore unless grandfathered in prior to TJCA.

[@CherylGoer]

Thanks for making it so easy to understand!!

[@daibui1342]

Wonderful video. Thank you for your explanation.

[@shemaalh4163]

you are a lifesaver , thank you

[@joshuanete8586]

Thank you very much. Very clear and concise explanation.

[@wubalemjones6348]

Very clear explanation. Thank you so much.

[@sunnypcc]

how do you determine the tax rate of year 4 to be 40% since that year we have a loss. in addition, you credit income tax expense for 56800, that is a negative expense amount, can we still call it expense, or we should call it income?

[@kboone8739]

you did an incredible job! thank you!

[@Edspira]

No problem. Thank you for the kind words!

[@josejoselete6156]

why a company will carry foward profits? or why looking at a quaterly return a company will have in dec 70M profit carried forward and 3 months later 180M?

[@BBFletcher4202]

Thank you for this 🙌🏾

[@qaisurrehman]

great video thank you for sharing your knowledge.

[@rob8482]

How do you clean a tarantula? Great job explaining understandably. THX

[@Edspira]

Very carefully with a fine-tooth comb :)

[@sarasaamogougouemeta6584]

Brilliant video

[@musicbyshox]

In my CPA review book, It debits a Tax refund receivable and credits a Tax benefit (instead of a income tax expense) for the Carryback. Is this because they do not like the idea of reversing an interest expense?

[@Edspira]

Could be, sometimes people get confused when an expense is credited. Companies title their accounts differently, so a journal entry would look slightly different from one company to the next, but the effect will be the same. A through journal entry for this transaction might be: debit: Income Tax Refund Refund Receivable credit: Benefit Due to Income Tax Carryback (Income Tax Expense)

[@neversayjello]

I think DTB (instead of a credit to ITE) is used because most firms don't want a negative expense on the P&L.

[@jonesba2004]

Ok. I’m back again. HELP ME PLEASE!!! Please explain the difference between an NOL and a section 465(d) carryover. I’ve searched everywhere and can not find an answer to that question. How are they different? How do they get reported? TurboTax calculated a net loss of $ -11,915 on line 31 on my schedule c in 2013. (Just using these years as examples.) In 2014,TurboTax autopopulated $ 11,915 as Section 465(d) carryover in Part V - Other Expenses of that year’s Schedule C. On my 1040 for 2013, Line 22 Total Income is $ -13,461. For 2014 it was $ -12,011. So, shouldn’t a NOL come into play somewhere? But how? Ugh?? Do you have another video that can help with these questions? Thank you so very, very much.

[@tranvo1846]

Can you do one about corporation carryback 3 years and carryforward 5 years? Since it's new, thanks.

[@thuyha7613]

Thank you so much

[@SerjEpic]

What about the carrybacks and carryforwards after the 2018 rule change?

[@armanzakeosyan8191]

basically if I elect to forego carryback period that's mean I'll not be able to go back for 2 years, but can carryforward the NOL up to 20 years?

[@chsol27]

How would the revised tax rule: 80% deduction limitation on carryfrwd apply? journal entry please?

[@lenso010]

If I lost money last 7 years and made Money this year can I deduct the tax from previous years loss in USA ? If yes how many years I can go back for loss ? Some countries you can go 5 years back of losses.

[@haochundagg103]

Thanks,my boss❤

[@samuelkwon5824]

Does one have to carry back first before carrying forward? Can I only do one year back, and then 20 forward?

[@tiprout97]

Great work.

[@Edspira]

Thanks!

[@rankpull7925]

What about the current tax reporting period? If NOL year was 2017, will I be eligible for a tax refund in 2017 or only in subsequent years, should I choose to carry it forward?

[@Edspira]

If you paid taxes the last 2 years, you would be eligible for a refund if you carry the losses back. You could also carry the losses forward for 20 years. It is typically preferrable to carry losses back due to the time value of money. Any taxes that were paid during the year would also be refunded with your 2017 tax return.

[@SA-StoneKind]

great videos.

[@patrick_kyker]

$200,000 loss in a pet grooming business? They need to lower their overhead. lol

[@jesswong5173]

Thank you!!!!

[@ethanedwards6725]

what if the loss does not exceed the previous 2 years profits... no help thanks for nothing

[@buffalorun3]

you are the GOAT

[@SidneyTwito-t8p]

Emmanuel Fields

[@AdamsHubbard-b5w]

Carli Valley

[@ALCRAN2010]

Year 4 must have been 2020.

[@meghachawla5nine]

Is it just me or anyone else's eyes hurt too while watching this video. Why couldn't the person use a white background 🥺

[@shaungorham7959]

Qatar, Cool.

[@OVTO]

Huh