Single Taxpayer has NOL carryforward of $5,000 as of 12-31-07. He marries someone with large W-2 income in 2008 and has no income on his own to offset this loss carryforward.
How do I keep the NOL on hold until he has income to use it?
The loss should carry forward without an issue. Check your NOL carryforward screen to make sure its there.
If the NOL is usable on the joint 2008 tax return, its usable. You do not get to say only use it when he has income if it is a joint return. Sounds like a $13K tax savings is worth using a $5K NOL.
Dude fell into a honey pot, huh?
According to pub 536 - change in marital status -you do not get to offset unless you have the income.
Pub 536, page 10. SRLY NOL c/f. Since the software probably cannot do it without overrides, I would just keep a paper schedule handy each year until he can use it. You might want to add an additional info statement to the return to keep it in play.
I stand corrected.
