Need a Silver Lining?
Try the NOL Deduction
year's not half over. But if your company is off to a rough
start, know that a silver lining may exist in the net
operating loss (NOL) deduction:
A net operating loss occurs when a business's operating
expenses and other deductions for the year exceed its
revenues. To qualify for the deduction, you must have business
expenses in excess of your business income, though certain
Generally, once you incur a qualifying NOL, you can either
carry back the NOL as far as allowable (typically two years)
and then carry forward any remaining amount, or you can elect
to carry forward the entire loss. Carrying back a loss can
generate a current tax refund, which could free up cash flow
during difficult times like these. Carrying forward a loss
will offset income for up to 20 years in the future.
Say your business incurs a $60,000 NOL for the 2016 tax year.
You could choose a carryback period for its NOL of two years
preceding the loss (first to the earliest year) and then carry
forward any remaining amount for up to 20 years after the year
in which it incurred the loss. So you might elect to carry
back the entire loss first to 2014. If your 2014 net income
was $6,000, you could use $6,000 of the NOL to offset this
income and receive a refund of the tax you previously paid on
From there, you'd have $54,000 of remaining NOL to apply to
the 2015 tax year, after which you'd have whatever you hadn't
used in 2015 to carry forward to 2017 and beyond until all the
money is used or you hit the 20-year mark (whichever comes
This is just one example of how the NOL deduction might work.
To get a better grip on the best way to handle it, please give
us a call. Call us at
SMEED CPA Adds Financial
Services To Help Clients With
Investments & Insurance
often we here at SMEED CPA are asked about financial issues
that impact our clients investments and their portfolios.
We always offered our opinion and suggestions but in order to
help our clients actually execute the changes we suggest,
SMEED has created a Financial Services division.
SMEED Financial Services, Inc. will be able to
work with both individual and business clients on their
investment portfolios and manage assets on their behalf.
SMEED Financial will include Michael Uadiale,
ACA, CPA, CGMA; and Pablo Blanco who has
recently joined SMEED and comes with over 18 years of
financial sales and advising experience with affluent
Watch your inbox and mail boxes for more specific information
on services SMEED Financial Services, Inc will make available
Would You Give Me Your
Feedback & Testimonial
on Our Hotline?
Hello it’s Michael Uadiale, CPA of
SMEED CPA Inc. We’ve just installed a toll-free
number that I would like for you to call and tell me how you
think we are doing as your CPA firm.
Just dial 800-609-9006
extension 3638 and follow the instructions. If we’ve
done a good job please let me know. And if we can
improve on anything, please mention that too.
Us Be Found on
Also as we expand our business,
we find more and more people are using
YELP and Google
to look for us by searching Brentwood accountant or
When they do this we want to
be FOUND on GOOGLE. One way you can help us
is to give us an
ONLINE REVIEW on our Google Maps/Places listing --->
or on our YELP local listing
click here to go to our Google Listing for SMEED CPA and
click on the
YELP link to go there.
Scroll down to the Review area.
On either site it may say: Been here?
Rate and review
You will click on the Rate and
review link and then log in, then
give us a review!
You can choose between 1 and 5
STARS and write in what you think about the tax or accounting
work we have done for you.
It's that simple. Thank
you in advance for your help and cooperation!
As always you can call our offices if you have any
questions about these or any other accounting related issues, at
Regards, Michael Uadiale, CPA,
Managing Partner, SMEED CPA,