What Is a Tax Loss Carryforward?
A tax loss carryforward (or carryover) is a provision that allows a taxpayer to move a tax loss to future years to offset a profit. The tax loss carryforward can be claimed by an individual or a business to reduce any future tax payments.
[https://www.investopedia.com/terms/t/tax-loss-carryforward.a…](https://www.investopedia.com/terms/t/tax-loss-carryforward.asp#:~:text=A%20tax%20loss%20carryforward%20(or,reduce%20any%20future%20tax%20payments).
Question 1. Is there a time limit to the carry forward?
Say an individual taxpayer has $400,000 in realized losses.
How long can those losses be carried forward? 10 years? 50 years? Indefinitely?
Question 2. Businesses can apply today’s losses retroactively to previous tax years - called “carryback”.
The Tax Cuts and Jobs Act (TCJA) removed the 2-year carryback provision, extended the 20-year carryforward provision out indefinitely, and limited carryforwards to 80% of net income in any future year.
https://www.investopedia.com/terms/l/losscarryforward.asp#:~….
Is carryback available to individuals?
Is so, when would it make sense to do it?
TIA
ralph