1120-US: NOL Carryover Worksheet (FAQ)

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Question

How do I reduce the NOL carryover to reflect amounts no longer available?

Answer

UltraTax/1120 determines if any NOL carryover is available by netting the Prior (Income Offset) NOL Utilized amounts with the Income (Loss) amounts for each of the preceding tax years.

  • Enter the amount of the loss reflected in the Income (Loss) field that has been utilized in prior years as a positive number.

    For example, a $10,000 NOL was generated in the 2013 tax year. $2,000 of the NOL was carried back, $3,000 was utilized in the 2015 tax year, and $4,000 was utilized in the 2016 tax year. The screen fields should appear as indicated in the following table.

    Preceding Tax Year Income (Loss) Adjustments to NOL Prior (Income Offset) NOL Utilized
    2013 (10,000) 7,000
    2014
    2015 3,000 (3,000)
    2016 4,000 (4,000)
    2017
  • Enter the amount of income reflected in the Income (Loss) field that has been offset by NOL as a negative number. This is only necessary for income in the preceding years that can be used to carry back a current-year NOL.

    For example, if income (Taxable income before net operating loss deduction and special deductions less Special deductions) in 2016 was $15,000 and in 2017 there was a $7,000 NOL that was carried back to 2016, the screen fields should appear as indicated in the following table.

    Preceding Tax Year Income (Loss) Adjustments to NOL Prior (Income Offset) NOL Utilized
    2016 15,000 (7,000)
    2017 (7,000) 7,000

Related topic: 1120-US: Net operating loss deduction FAQs

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