That is probably in reference to Form 1045 and manually calculating a net operating loss (NOL) if your adjusted gross income is a negative number.
That is probably in reference to Form 1045 and manually calculating a net operating loss (NOL) if your adjusted gross income is a negative number.
A net operating loss (NOL) results from the situation in which a business or individual has more allowable tax deductions than it has taxable income. In this case, the business has negative income, or a net operating loss. That's the bad news. But the good news is that you may be able to take that net operating loss and move it to a tax year in which you had a profit (actually, net operating income) in future years.
To have an NOL, your loss must generally be caused by deductions due to expenses from:
If you get the screen below, the program has calculated more loss than income. You can look on your 1040 to see it.
If you say yes, then you will be informed that you can carry it forward to 2020.
Can you advise what Turbotax actually does when you answer YES to having a NOL, other than show the next screen advising you can carry forward? Does it waive carryback, attach any statements, change the numbers on the return, or anything like that?
@Anonymous wrote:
Does it waive carryback, attach any statements, change the numbers on the return, or anything like that?
Apparently, the Section 172(b)(3) election statement is generated but the user has to check the appropriate box on the statement in Forms Mode in order to actually make the election.