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K-1 (1041) NOL Carryforward to offset Roth IRA Conversion
Old 03-27-2013, 10:52 AM   #1
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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!

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Old 03-27-2013, 02:03 PM   #2
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This is very technical, and very important. Maybe see what your accountant says, and if you wish do further research after that.


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Old 03-27-2013, 02:36 PM   #3
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As a retired, CPA, absolutely see your tax professional. This is too big to make a mistake on.
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Old 03-27-2013, 02:42 PM   #4
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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.
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