MILESCFA
Level 1

Do you have to file the GA 500-NOL ONLY when you want to utilize the losses?

Background: Clients were Ga residents who began renting their GA home when the husband joined the military. First duty station was FL and they were smart enough to become FL residents. From 2017 forward, they had NOLs on their home, but no prior tax pros filed GA tax returns (they have reported and utilized the NOLs on the 1040).  I am assuming that even though the NOLs were used at the FED level, the GA NOLs are suspended passive losses. We plan on filing GA returns next year because we don't want a depreciation "use or lose" situation (ie, depreciation taken or SHOULD HAVE BEEN taken esp. since GA seems to want to disallow a lot of NOLs if not filed exactly right.). The Ga 500-NOL instructions are crap and I cannot figure the correct filing instructions. Somewhere I got the impression the (first) NOL in 2017 should be shown on the 2018 Ga return to be carried forward, and then this combined total should be put on the 2019, etc; however, the "file a GA 500-NOL for each year" instructions seemed to imply you do not file the 500-NOL form until you actually want to use the GA NOLs.

 

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