Join Early Retirement Today
Thread Tools Search this Thread Display Modes
K-1 (1041) NOL Carryforward to offset Roth IRA Conversion
Old 03-27-2013, 10:52 AM   #1
Dryer sheet aficionado
Join Date: Jan 2012
Location: Spokane
Posts: 32
K-1 (1041) NOL Carryforward to offset Roth IRA Conversion

I have a 2012 K-1 (form 1041), box 11 - Final year deduction, code D - Net operating loss carryover - regular tax of $277,395.

Two questions for those of you who understand tax code better then myself:

1. Am I allowed to carryover the unused NOL amount into future years until depleted since this is related to the closing of a trust as reported on the Schedule K-1, Final K-1, that I received from the trust this week? (I plan to waive the 2 year carryback option, if available, to take advantage of a yes answer to question 2 below)

2. If am allowed to carryover unused NOL losses, can I use these to offset taxes on a Roth IRA Conversion?

Yes I do plan to meeting with my tax advisor; however, I'm trying to understand my options prior to this meeting, which will be delayed due to the tax time frenzy of his appointments.

Thanks for you comments!

Spokane2303 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-27-2013, 02:03 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
Join Date: Apr 2003
Location: Hooverville
Posts: 21,829
This is very technical, and very important. Maybe see what your accountant says, and if you wish do further research after that.


haha is offline   Reply With Quote
Old 03-27-2013, 02:36 PM   #3
Recycles dryer sheets
Join Date: Jul 2008
Location: Sacramento area
Posts: 444
As a retired, CPA, absolutely see your tax professional. This is too big to make a mistake on.
AWeinel is offline   Reply With Quote
Old 03-27-2013, 02:42 PM   #4
Recycles dryer sheets
Join Date: Jul 2008
Location: Sacramento area
Posts: 444
NOW... given my post above, after some VERY quick and shallow research, your strategy looks sound on the surface. It all depends on the facts and circumstances of your particular situation... but you may in fact be the "ideal" canditate for a Roth conversion. Good luck.
AWeinel is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


All times are GMT -6. The time now is 04:05 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.