J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return

40.22 Election To Carry Forward Losses

Instead of carrying back your 2012 net operating loss (40.21), you may elect to forego the carryback. Instead, you just carry forward losses. The carryforward period remains 20 years under the election. The election is irrevocable. It applies for both regular tax and alternative minimum tax purposes.

If you are carrying forward a net operating loss from an earlier year to 2012, report the loss carryover as a minus figure on Line 21 of Form 1040 and attach a statement explaining how the carryover was computed.