1120-US: Taxable income on Form 1120-C not reduced by the available patronage net operating loss (FAQ)

Alerts and notices
Leave feedback

Internal Employees: Submit feedback

Contact information (optional):

Leave this blank:

Please tell us how we can make this information more helpful.

Characters left:

Change to CS Support service hours

Our Support department is closed on [[date]]. However, limited UltraTax CS phone support is available on that date from 9 AM - 5 PM ET due to the approaching deadline.

Links to our most popular tax processing topics are available in the Alerts and notices section on the right side of most pages.


Why is the taxable income not being reduced by the available patronage net operating loss?


Patronage and nonpatronage losses must be calculated separately and carried over or carried back separately. Under Section 1388(j)(1), cooperatives can use losses to offset earnings only to the extent that the earnings and losses are from business done with or for patrons. Any patronage source loss cannot be used to offset nonpatronage income.

Related topic: 1120-US: Form 1120-C - Cooperative associations FAQs

Share This