If the taxpayer sold such asset, a substantial part of the proceeds would be paid in taxes. If you have a negative taxable income, not only do you not pay taxes for the current year, but you may actually have an NOL which can be carried back three years and carried forward for up to fifteen years. Not all expenses are allowed for NOLs. The major items that will cause an NOL are large business losses, large real estate losses, a large casualty loss, or a large investment loss. Bunch Your Itemized Deductions.
Taxpayers can utilize the larger of their itemized deductions or the standard deduction.
If you are taking the standard deduction, any itemized deductions are wasted. Thus, it is important to bunch as many itemized deductions into a year in which you are itemizing as possible, and to minimize or eliminate itemized deductions in a year you are taking the standard deduction. If You Itemize, Take All Deductions for Taxes. Allowable itemized deductions for taxes include all state income taxes and local income taxes paid during the calendar year, all real estate taxes, all personal property taxes and perhaps certain other taxes depending on your state classification. Interest Expense is classified in five different categories.