Calculating a current-year net operating loss (NOL): 1040 Indiana (IN)

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To calculate a current year Indiana NOL to carry forward to future years, federal Form 1045, Schedule A-NOL must first be calculated under Indiana law. Next, Schedule IT-40NOL can be completed to determine the actual amount of current year net operating loss to carry forward. These calculations are made automatically for Indiana residents. The pertinent information carries forward to the next year.

The federal data entry and amounts entered on the INAdj screen are used to calculate Indiana’s Form 1045A-NOL and Schedule IT-40NOL. Use the INNOL screen to force the amounts on Indiana Form 1045A-NOL.

  • Form 1045, Schedule A-NOL has changed from year-to-year. For any given loss year, you must use the corresponding year to calculate Form 1045, Schedule A-NOL.
  • Under certain circumstances, it is possible to have both positive AGI and a net operating loss calculating in the same year. See Ignoring NOL generated in current tax year when there is taxable income for more information.
  • As of 2012, all net operating losses must be carried forward. See Carrying over a current-year NOL for more information.
  • UltraTax CS does not make NOL calculations for part-year residents or nonresidents. Use the INAdj screen and Schedule IT-40NOL in the Non Calculating fold for NOL calculations to report with Form IT-40PNR.

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