Small Businesses That Lost Money During '08 Can Take Part

9.14.09

by Russ Wiles
The Arizona Republic

Small businesses that lost money in 2008 still have time to take advantage of a special tax break, but the deadline is today.

The American Recovery and Reinvestment Act, enacted in February, allows firms that lost money last year to carry back or apply the loss against income for up to five prior years, rather than the usual two.

This means a business that posted a net operating loss in 2008 could reap a special tax refund and that the refund could be larger than normal because it can be spread over more years, according to Phoenix law firm Jennings Strouss.

The deadline for corporations to file appropriate forms is today, while eligible individuals have until Oct. 15.

A two-year loss carryback remains available for businesses that don't elect this special provision.