What to do now?
Client incurred a very large business loss in 2020. For Federal tax purposes, due to the CARES Act, we were able to carryback the NOL to prior years. The NOL was fully absorbed in those prior years.
For New York State tax purposes, we carried forward the New York State NOL and took a deduction in 2020 and in 2021 for a portion of the NYS NOL. New York State then Re-Coupled with the Federal rules. The 2022 NYS tax Form IT-558 has changed from the 2021 version, and does not address allowing the deduction for the 2022 NYS NOL.
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Sanford E. Zinman
CPA
ZINMAN ACCOUNTING
Greenwich CT
914-253-6511
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