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What is an "Eligible Small Business" For Net Operating Loss Carryback Purposes?

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Question: What is an "Eligible Small Business" For Net Operating Loss Carryback Purposes?
For tax years 2008 and 2009, eligible small businesses are able to carry back net operating losses for 3, 4, or 5 years, an increase over the previous IRS limits of two years. This means that the business may be eligible for tax refunds for those years. So, what is an "eligible small business?"
Answer:

For the purpose of determining eligibility for increased operating loss carry back tax savings, an "eligible small business" is a corporation or partnership that meets the gross receipts test of Internal Revenue Code Sec. 448(c) for the tax year of the loss (using $15 million instead of $5 million), or a sole proprietorship that would meet that test if the propri­etorship were a corporation. In other words, a business is eligible if it conducted business as a corporation, partnership, or sole proprietorship and if its average annual gross receipts, as modified for the three years ending with the tax year before the year of the loss are $15 million or less.

Read more information on the restrictions and qualifications for this NOL carry back change."

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