CLASSES BY CATEGORY  •Accounting & Auditing  •Computer Technology  •Ethics/Regulatory Review  •Fraud (Monthly)  •Tax CLASSES BY DATE CLASSES BY LOCATION   Costa Mesa   Culver City   Pasadena   Woodland Hills DIRECTIONS   Costa Mesa   Culver City   Pasadena   Woodland Hills                               NET OPERATING LOSS (NOL) RULES: SAVE TAXES & IMPROVE CASH FLOW INDIVIDUALS Dates & Locations Classes meet 9:00am-5:00pm taught by Ed Monsour Only $250! Lunch is included with 8-hour classes 8 CPE Hours Update No Prerequisites No Advance Preparation (NASBA: TX) INDIVIDUALS The "economic" or "business" loss is what the law intended to allow as a net operating loss (NOL) sometimes helps to understand the adjustments to taxable income necessary to arrive at the NOL, as well as the recomputation of tax liability for the year(s) to which the loss is carried. Carryback and carryover periods. An NOL can be carried back and carried forward to offset income in other taxable years. General rules. An NOL is applied initially to the 2 taxable years preceding the year of the loss in the following sequence: first to the second prior year, and then to the immediately preceding tax year. If the loss is not used up in the carryback period, it is carried forward. The carryforward period is 20 years. If the loss is being carried to a preceding year, an amended return is filed on Form 1040X, or a quick refund claim is filed on Form 1045. Exception to two-year carryback period. A 3-year carryback period is available for any portion of an individual's NOL resulting from a casualty or theft loss. The 3-year carryback rule also applies to NOLs that are attributable to presidentially declared disasters that are incurred by a small business or a taxpayer engaged in farming. A small business is one whose average annual gross receipts for a three-year period are $5 million or less. A 5-year carryback period is allowed for a farming loss. Under the ARRTA of 2009, an eligible small business can increase the carryback period for a 2008 NOL from two years to up to five years. An eligible small business is a taxpayer with average gross receipts of $15 million or less. The NOL involved must occur during a tax year beginning or ending in 2008. Election to forgo carryback. A taxpayer can elect not to carryback an NOL to any of the prior years. The loss is then available as a carryover for 20 years. CORPORATIONS Individual and corporate taxpayers may have net operating losses (NOLs) that can be carried back 2 years and forward 20 years to offset taxable income. Comparison Between Individuals & Corporations -Corporations do not adjust their tax losses for capital losses as individuals do. -Corporations do not make adjustments for nonbusiness deductions or for personal exemptions as individuals do. -Corporations include their dividends received deduction in computing the NOL. -Like individuals, corporations may elect to forgo the carryback period. -The American Recovery and Reinvestment Tax Act of 2009 (ARRTA) provides for a five-year carryback of NOLs under the following conditions. -Taxpayer must average gross receipts that are less than $15 million. -NOL involved must occur during a tax year beginning or ending in 2008. TREATMENT OF LOSSES (Flow Through Entities) Losses may flow through, but only to the extent of the shareholder's stock and loan basis. -When the full amount flow-through losses are limited because of basis, the amount of each type of loss is determined on a pro rata basis. -Although any unused loss may be carried forward, this carryover may be deducted only by the same shareholder in subsequent years as increases in basis occur. Distributions are applied to stock basis before the basis is reduced for current year losses and deductions. Thus, shareholders receiving distributions may determine the tax treatment of the distribution before year end. -Following the termination of an S election by the corporation, any unused losses are deductible only in the next year and are limited to the stock (no loan) basis as of the end of such year. If not deductible within this year, the benefits are lost forever. - C corporation NOLs occurring before the S election cannot be utilized by the S corporation. Click course name below for information on other FER courses. A&A Focusing on CA Peer Review A Culture Of Financial Corruption: Fraud's Playground Accounting For Income Taxes: Understanding Uncertain Tax Positions Compilation & Review Engagements Death and Taxes 1: Form 1041 tax Preparation Workshop Death and Taxes 2: A/B Trust-Funding Workshop Death and Taxes 3: Estate Tax Form 706 Workshop Digital Forensics: Finding Fraud Estate & Gift Planning For 2011 & 2012 And Beyond Estate, Financial and Asset Protection Planning: Integrated Issues Faces Of Fraud Financial Statement Disclosures Forensic Accounting & Expert Witness Workshop GAAP & GAAS Update Hot A&A Topics Other Comprehensive Basis Of Accounting: Cash and Income Tax Basis Reporting (OCBOA) Partnerships, S Corps, C Corps & LLCs: Tax Aspects Pension Plan Audit Workshop Road Map To Fraud Prevention SSARS Update With Sweeping Changes To SSARS #19: Are You Ready For Peer Review? Tax Research Time-Saving Techniques Tools To Detect And Prevent Fraud Using Technology To Your Best Advantage Financial Education Resources is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State Boards of Accountancy have final authority on the acceptance of individual courses of CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Ave. North, Ste. 700, Nashville, TN 37219-2417 or by visiting the website www.nasba.org. CONTACT INFORMATION: For more information regarding refund, complaint and/or program cancellation policies, please contact our offices at 310.202.1669. © 2011 F.E.R. All rights reserved.