What is the name of your state? TX
My hubby filed Ch. 7 BK (asset case) on Dec. 28 2004. I did our 2004 tax return in March 2005 and sent it off. On it I claimed a NOL carryover and a capital loss carryover from 2003. Well, as I'm gearing up for this years taxes I found and read IRS pub 908 (Bankruptcy tax guide) which very clearly states that the loss carryovers from 2003 belonged to the BK estate and were not ours to use. Going back and removing those carryover losses does not change our tax refund from 2004 (which the BK trustee got) since we had ample 2004 losses which are considered post-bankruptcy since we did not claim the split year election. So.... the question is do I go ahead and amend the 04 tax return, removing the 03 carryover losses from the forms? Even if I don't formally amend I'm not going to use the losses, I would just remove them from the tally when I do this years taxes. I don't want to run afoul of the IRS but I also don't know if this is a big deal. Thanks
My hubby filed Ch. 7 BK (asset case) on Dec. 28 2004. I did our 2004 tax return in March 2005 and sent it off. On it I claimed a NOL carryover and a capital loss carryover from 2003. Well, as I'm gearing up for this years taxes I found and read IRS pub 908 (Bankruptcy tax guide) which very clearly states that the loss carryovers from 2003 belonged to the BK estate and were not ours to use. Going back and removing those carryover losses does not change our tax refund from 2004 (which the BK trustee got) since we had ample 2004 losses which are considered post-bankruptcy since we did not claim the split year election. So.... the question is do I go ahead and amend the 04 tax return, removing the 03 carryover losses from the forms? Even if I don't formally amend I'm not going to use the losses, I would just remove them from the tally when I do this years taxes. I don't want to run afoul of the IRS but I also don't know if this is a big deal. Thanks