An NOL Carryover Is Not Farm Income
This helps for the more than 75% test
I got a question this week that comes up more than you would think. A farmer has a big net operating loss carryover sitting on the return. Does that carryover count against him on the 75 percent farm income test?
My answer is no.
The two-year problem
Think about a net operating loss as living in two different years.
