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I have been filing as a Sole Proprietor for 10 years now and in previous years paid some hefty tax bills on my ordinary gains treated as ordinary income. I am using Mark to Market accounting and am classified by the IRS as a "trader in securities".
My question is if I have a large loss this year can I carry back this years loss to the year prior in which I had more income than current loss this year and paid a massive tax bill? Does it matter if you file as a sole Proprietor VS a partnership?
Example of income (taxed at highest rate)
2012 income of $250,000
2013 income of $350,000
2014 income of $500,000
2015 loss of $500,000
What could one expect to be refunded using a loss carry back?
The loss this year is large enough where doing a loss carry back is preferred since carrying forward the loss and using it against future income (gains) is difficult since there is a lot less trading capital. So any answers to my specific question are appreciated.
My question is if I have a large loss this year can I carry back this years loss to the year prior in which I had more income than current loss this year and paid a massive tax bill? Does it matter if you file as a sole Proprietor VS a partnership?
Example of income (taxed at highest rate)
2012 income of $250,000
2013 income of $350,000
2014 income of $500,000
2015 loss of $500,000
What could one expect to be refunded using a loss carry back?
The loss this year is large enough where doing a loss carry back is preferred since carrying forward the loss and using it against future income (gains) is difficult since there is a lot less trading capital. So any answers to my specific question are appreciated.
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