Screen INNOL - Indiana Net Operating Loss (1040)

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See also: 1040 Indiana frequently asked questions

Overview

To calculate a current-year NOL to carry forward to future years, taxpayers must first complete federal Form 1045, Schedule A-NOL using amounts under Indiana law. Using the calculation from that schedule, taxpayers must then complete Schedule IT-40NOL to determine the amount of current year net operating loss, if any. UltraTax/1040-IN makes these calculations automatically for Indiana residents and proformas pertinent information to the following year. Use this screen to enter information to adjust amounts on the Indiana version of Form 1045, Schedule A-NOL.

Notes
  • UltraTax/1040-IN does not make NOL calculations for part-year residents or nonresidents. Use Screen INAdj and Schedule IT-40NOL in the Non Calculating folder for NOL calculations to report with Form IT-40PNR.
  • An Indiana net operating loss must be carried forward. As of 2012, Indiana NOLs are no longer allowed to be carried back.

For more information on Indiana net operating losses, see 1040-IN: Net operating loss (NOL) overview.

Computation of Current Year Loss

UltraTax CS uses the amounts on federal Form 1045, Schedule A-NOL to calculate the Indiana version of Form 1045, Schedule A-NOL. Use these fields to enter amounts that are different from the federal amounts.

Utilization of Current Year Loss

An unintended consequence of Indiana tax legislation passed in 2004 makes it feasible under certain circumstances to have both positive Indiana AGI and a net operating loss in the same year starting with tax year 2004. The net operating loss may be transferred to other years, but the loss may not be applied to the Indiana AGI from the year in which the loss occurred.

If a taxpayer has both an NOL and positive Indiana AGI in the current year, mark the Ignore net operating loss checkbox on this screen to treat the current year NOL carryback / carryforward amount as zero.

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