In a recent article featured in the Wall Street Journal, attorney Barbara Weltman discussed how old tax returns still have value. Individuals and businesses can seek to amend past returns in order to receive tax refunds. Reviewing old tax returns may also serve as a reminder to take other deductions or carryovers on this year’s return. For business owners, here are some important things to check when reviewing your old returns:
· Home Office Deductions: The deduction for home office expenses cannot exceed the gross income from the home office activity in any taxable year. However, any excess may be carried forward and used to offset gross income at any time in the future.
· Net Operating Losses (NOLs): Losses relating to your business that are not used on a current year’s tax return may be carried back for two years and carried forward for up to 20 years.
· Tax Credits: Tax credits as a part of the general business credit (meaning the overall limitation of a combination of business credits) may be carried back for one year and forward for up to 20 years. This year, small businesses may carry back credits for up to five years.
These are just a few of the ways you can squeeze more pennies out of your tax return. For the complete article, visit www.wsj.com.
No comments:
Post a Comment