using NOL carryovers against IRA distributions
A new client has $1,000,000 of NOL carryovers from hog confinement shares (K-1’s).
He is dying; the NOL’s are lost upon death. Can we sell the Confinement unit interests to the wife and preserve the NOL carryovers so that the wife can use them? I can find where the NOL’s are lost at death, but nothing saying they don’t run with the ownership of the asset.
Anybody steer me on this? I would like to use the NOL’s against IRA’s, but will still have some left.
Permalink Submitted by mk foss on Sat, 2012-01-21 23:48
A sale of the asset generating NOLs will not transfer prior year losses to the new owner – whether a spouse or not. Check the rules for NOLs – in a community property state perhaps only half of them would be lost. Accelerting IRA distributions is a good way to utilize NOLs.
Permalink Submitted by Bruce Steiner on Sun, 2012-01-22 00:20
Or a Roth conversion.