Asking on behalf of a close family member who has had significant medical issues over the past five years... Let's call him Jim.
Jim hasn't yet filed his 2012, 2013, 2014 or 2015 taxes (the 2015 aren't due yet, of course). In each of these years, Jim has had significant negative income that would otherwise qualify for carry-forward.
In 2016, Jim plans to realize some stock gains and would like to use the negative carry-forward from 2012-2015 to offset these gains.
Jim's worry is that because he is late in filing is 2012-2014 taxes, he might no longer be allowed to carry forward losses from those years.
Is Jim right to be worries?
Thanks!