Carryback

Businesses with gross receipts of as much as $15 million will be permitted to apply current operating losses to tax bills going back five years, a provision known as a carryback that effectively offsets past tax liabilities. ❋ Unknown (2009)

And then there's conservative economist Martin Feldstein who calls the carryback loss provision "primarily lump-sum payments to selected companies." ❋ Unknown (2009)

For businesses and entrepreneurs, they'd allow businesses to either fully deduct the cost of their new assets from their tax returns; they'd cut the top corporate tax rate bracket by ten percentage points; end the capital gains tax on inflation; extend the "carryback" period for operating losses to seven years. ❋ Unknown (2009)

Even if they are the very same kind of tax cuts (e.g., bonus depreciation, loss carryback provisions, etc.) ❋ Unknown (2009)

A refund of prior year taxes due to the carryback of current year losses can be enough to allow this small business to stay in business and keep its employees working. ❋ Unknown (2009)

But not if the tax break is a refundable credit, or has carryforward or carryback features like, say, the capital loss deduction. ❋ Unknown (2010)

Small businesses had a similar NOL carryback option for 2008 losses. ❋ Barbara Weltman (2010)

For 2009, small businesses (defined as having average annual gross receipts of $15 million or less in the three years ending with the year of the net operating loss) can again use the longer carryback period (if they still have income in the carryback years to offset); larger businesses must choose whether to use the longer carryback period for their 2008 or 2009 NOLs. ❋ Barbara Weltman (2010)

How to Get a Carryback Refund File amended returns for the carryback years (sole proprietorships, partnerships, limited liability companies and S corporations file amended Form 1040X; C corporations use Form 1120X). ❋ Barbara Weltman (2010)

And a business that's entitled to take a carryback might opt instead to carry the loss forward, particularly if it expects to be taxed at higher rates (because of profitability or increased tax rates) in years ahead. ❋ Barbara Weltman (2010)

However, thanks to the stimulus, businesses that show a loss in 2009 can choose a three -, four - or five-year carryback (although only half of the income in the fifth year can be offset). ❋ Barbara Weltman (2010)

The legislation extends the carryback for five years for all forms of businesses (including sole proprietorships, partnerships and non-publicly traded corporations) with $50 million or less in average gross receipts for the prior three years. ❋ Unknown (2010)