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bcmv
New Member

Schedule k-1 and NOL carry back

I have a schedule K-1 from 2016 with NOLs. I want to file 1040x to carryback losses 2 years. Do I put this schedule K-1 in this year's return? If I carryback losses, I will have less NOL carried over. I don't know where to fill out the NOL already claimed in previous years in this year return.

1 Best answer

Accepted Solutions
PatriciaV
Employee Tax Expert

Schedule k-1 and NOL carry back

Yes, if the current year Schedule K-1 creates a Net Operating Loss (NOL) that you may carry back to prior tax returns, include the information from that K-1 on your current year tax return.

You may only carry back NOL if you have income in prior years to offset the loss. Any unused NOL is carried forward after the current year.

Example:

  • Current Year NOL = <$25,000>
  • 2015 income = $2,000; 2014 income = $10,000 
  • Carry back $12,000 of NOL on amended returns ($2,000 to 2015 & $10,000 to 2014) leaving net income = 0 for both years.
  • Balance of NOL = $25,000 - $12,000 = $13,000.
  • Carry forward $13,000 to next year's return.

Losses in the last two years would have been carried forward to increase the current year NOL. In this case, there is no carryback. The entire NOL is carried forward.

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6 Replies
PatriciaV
Employee Tax Expert

Schedule k-1 and NOL carry back

Yes, if the current year Schedule K-1 creates a Net Operating Loss (NOL) that you may carry back to prior tax returns, include the information from that K-1 on your current year tax return.

You may only carry back NOL if you have income in prior years to offset the loss. Any unused NOL is carried forward after the current year.

Example:

  • Current Year NOL = <$25,000>
  • 2015 income = $2,000; 2014 income = $10,000 
  • Carry back $12,000 of NOL on amended returns ($2,000 to 2015 & $10,000 to 2014) leaving net income = 0 for both years.
  • Balance of NOL = $25,000 - $12,000 = $13,000.
  • Carry forward $13,000 to next year's return.

Losses in the last two years would have been carried forward to increase the current year NOL. In this case, there is no carryback. The entire NOL is carried forward.

bcmv
New Member

Schedule k-1 and NOL carry back

Do I need to fill out anything to carry back NOL in current year tax return? I think I would just file 1040x to carry back NOL 2 years is this correct?
PatriciaV
Employee Tax Expert

Schedule k-1 and NOL carry back

Yes, you would need to file Form 1040X to amend your 2 prior year returns. Enter Schedule K-1 to report current year NOLs.
jerry_fusco
New Member

Schedule k-1 and NOL carry back

Other option is to file 1045 and not amended returns.  Normally 1045 is a faster way to receive you refund instead of filing 1040x.  It would still be wise to calculate each amended return since the process is complicated.
pdiaztorres
Level 2

Schedule k-1 and NOL carry back

I am sorry I don't understand this explanation. I've had the following results 2017 NOL of $3,004; 2016 net income $7921; 2015 net income of $11,221. can you explain what do I put in page 2, Part II , column g) Passive Income from Schedule K-1, and rows A, B which sum generates 29a Total? My former CPA indicated that the $0 in column g) as it was filed for 2017 was incorrect. How should it be done then? i had no errors prior to filing. I already filed both business and personal tax returns on March 9,2018
pdiaztorres
Level 2

Schedule k-1 and NOL carry back

the boxes referenced above are on form 1040

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