Small Business Tax Tip #1: Tap New Rules for Business NOLs

Facing a still-difficult economy and a flurry of tax changes, business owners must be especially alert to new tax pitfalls and opportunities. To help our small business readers, Business.com collected top tips from leading small business tax experts coast-to-coast. What Works for Business will run a new tip daily for the next 10 business days.
Small Business Tax Tip #1: Tap the new rules for business NOLs: “Small business owners need to plan for their net operating losses (NOLs),” says CPA Stacey Dell, a tax partner with Mohler, Nixon & Williams in Campbell, CA. “ An election must be made at the time a tax return is filed to either carry back or carry forward the current year NOL. Check your tax rates and income levels from the prior years. If income is expected to increase in the future, it may be better to carry the loss forward.”
Check back tomorrow for the next expert Small Business Tax Tip in our series. For the latest small business tax solutions and advice, including tax services, accounting software, accounting firms and CPAs, visit the Accounting channel at Business.com.