A basic query here. I have a NOL for tax year 2018 (filed in 2019) and am carrying it forward. Would the Deferred Tax Asset be recorded on the 2018 ledger or the 2019 ledger? Company is a C corp. Thanks.
Depending on the accounting method you are using, you could carry the NOL deferred tax asset forward in the books. Make sure that you remember, that since Jan 2018, only 80% of the taxable profit can be offset by NOL and the carryforward period has been extended from 20 years to indefinite.
Thanks. That what I had done. I just wasn't sure if would be recorded in 2018 books or 2019. At any rate, I think I'm now going to change it up and carry it back since we can go back 5 years based on the CARES Act.
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