Certain AMT NOLs may be carried forward to offset AMTI by 100%

October 2011


Recently, many taxpayers have benefitted from an election pursuant to IRC § 172(b)(1)(H) to expand the carryback period of amounts attributable to net operating losses (NOLs) for tax years beginning in either 2008 or 2009. The election allowed taxpayers to carryback regular and alternative minimum tax (AMT) NOLs up to five years. Pursuant to the election, the expanded carryback suspended the 90-percent limitation on the use of any AMT NOL deduction attributable to carrybacks of the applicable NOL for which an extended carryback period was elected. Because of the election, an AMT NOL not fully utilized after the expanded carryback remains exempt from the 90-percent limitation and may be carried forward to entirely offset alternative minimum taxable income (AMTI) in future tax years.

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