I sometimes browse the threads and they are tremendously informative - thanks to all
When I lived in the states, I had a signficant loss (I believe it is referred to as NOL net operating loss) one year. Since moving to Canada, I have not had the opportunity to use the loss as our income is less than the foreign exclusion (and using the loss on the 1040 would only decrease the loss amount unneccesarily since the foreign exclusion excludes our income).
As I see it, the loss can only be sued for the leakage between Canada and US. However, Canada/QC tax is mostly higher for personal, capital gains (maybe sale of primary residence but not happening anytime soon).
Have I missed anything?
Is it possible I would be able to use the loss for Canada/QC although the loss happened in a year when I was still a US resident and not a resident of Canada?
NOL on 1040 but
Moderator: Mark T Serbinski CA CPA
Re: NOL on 1040 but
No, you are stuck with the loss until you have some gain in US that would be taxed more there than in Canada, which is pretty unlikely. So, you will have it until you move back to US.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
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Re: NOL on 1040 but
Thx Nelsona and for the quick response.
Second thanks as I was under the impression that NOL was carryforward for 20 years and I now googled and see that it was changed to forever.
But its confusing, as it has a special calculation for NOL. And now I have another question.
I have not been reporting the NOL carryfoward for years as I mentioned above but am not sure according to the new requirements. My understanding is that the only time I would need to report the NOL carryforward would be in the year that I would be using it.
Thx again
Second thanks as I was under the impression that NOL was carryforward for 20 years and I now googled and see that it was changed to forever.
But its confusing, as it has a special calculation for NOL. And now I have another question.
I have not been reporting the NOL carryfoward for years as I mentioned above but am not sure according to the new requirements. My understanding is that the only time I would need to report the NOL carryforward would be in the year that I would be using it.
Thx again
Re: NOL on 1040 but
Sounds right.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing