I have a client who won about 30000 in a raffle. Half was cash the other half was a motorcycle. He's gong to keep the cash and donate the motorcycle to a local charity. He has a large NOL that was generated from a partnership from 10 years ago. Is there any reason the NOL won't reduce the winnings to zero. I've talked to other professionals and it seems there is a split in their opinions. Thanks
If you can't get a consensus from other professionals, it sounds like time to do some research and come to your own conclusion since you will be signing the return. Google is a good friend to have.
nol carryforward rules - Google Search
I've had more than one client with an NOL carryover that ended only with their death many years later. Typically, someone with a disaster in high-risk years will retire and need only $20K or $30K a year to reduce their AGI to zero. I keep a "permanent comment" in the files (hard copy and software) to remind me of when it eventually runs out. 25 years for some of them?
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