NOL Carryback

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For 2020, I have a net business loss (Same as NOL?). My Federal Carryover Worksheet shows a "Qualified business loss carryforward" of $175k (line 29). Is that the NOL carryforward and if so, why doesn't it then feed into a form 1045? Does the form 1045 have to be prepared manually?

Critter-3Answer

Level 15

Here is information on NOLs that may be helpful to you: IRS Pub 536 Net Operating Loss

No edition of TurboTax includes Form 1045. You can download the form and its instructions from the following links on the IRS web site. You have to do the calculations and fill out the form yourself. The form includes Schedules A and B. Form 1045 is not part of your tax return. It is filed separately.

Form 1045: http://www.irs.gov/pub/irs-pdf/f1045.pdf

Instructions: http://www.irs.gov/pub/irs-pdf/i1045.pdf

Anonymous_

Level 15

@wdc1701 wrote:

....why doesn't it then feed into a form 1045? Does the form 1045 have to be prepared manually?

Yes, it does have to be completed manually. TurboTax does not support Form 1045.

See https://digitalasset.intuit.com/DOCUMENT/A6QrdFCgW/010421-2020-unsupported-calcs-L1FQfTTgn.pdf

Critter-3

Level 15

For 2020, I have a net business loss (Same as NOL?). NO ... not the same.

My Federal Carryover Worksheet shows a "Qualified business loss carryforward" of $175k (line 29). Is that the NOL carryforward NO ... an NOL is not the same as a QBI loss carryforward.

Critter-3Answer

Level 15

Here is information on NOLs that may be helpful to you: IRS Pub 536 Net Operating Loss

Form 1045: http://www.irs.gov/pub/irs-pdf/f1045.pdf

Instructions: http://www.irs.gov/pub/irs-pdf/i1045.pdf

Mike9241

Level 15

even a net business loss is not the same as an NOL. simplified an NOL is the excess of business income over business deductions reduced by the excess, if any, of nonbusiness income over nonbusiness deductions. passive loss and other limitations can affect the amounts used for these items. see PUB 536 and its worksheet.

https://www.irs.gov/pub/irs-pdf/p536.pdf

or Form 1045 Schedule A

https://www.irs.gov/pub/irs-pdf/f1045.pdf

example loss from rental real estate subject to PAL limit $100,000 (before PAL limit). nonbusiness income $20,000. standard deduction $12,400. PAL limit $25,000. excess of nonbusiness income over nonbusiness deductions (standard deduction) =$20,000 - $12,400 = $7,600. NOL $25,000 - $7.600 = $17,400. the other $75K loss from rental real estate is acrryover to the following year.

Mike9241