So I'm doing back taxes for 2000 and 2001. The client had rental losses in 2001. The rental of rooms in his house started in 2001. Can the losses be carried back to 2000 if there was no rental activity in 2000? If so, there would be reduced tax owed but not a refund. Or, does the 3 year rule apply where three years or more after the return due date you cannot apply for a "refund" blah blah?Thanks
Rental losses cannot be carried back. If the losses are allowed as passive losses and the 1040 has an NOL, then the NOL can be carried back two years.
Where would I enter those since the prior year is being done simultaneously and is not being amended?
If by "those" you mean an NOL from 2001, you have to amend 1999 before you can carry 2001 NOLs back to 2000.
The NOL carrybacks go on line 21 of the 1040, other income.
But first check with the NOL rules. You may not be able to amend 1999 since it is a closed year, and since 2001 is so old it might not work to use it to carryback, in which case you may be out of luck. There are limits to the filing rules.
As stated for 1999 thru 2001 you may be SOL due to carryback rules
