I had a NOL in 2018. I used Form 536, worksheets 1 and 3 to calculate the carryover amount to 2019. In 2019, I incurred another NOL (excluding the 2018 carryover NOL) and calculated the carryover amount to 2020 using same worksheets. I thought we must use the earliest NOL first. Using the form 536 instructions/worksheets, all of the 2018 NOL carried over to 2019 will not be used at all. Instead, the losses of 2019 will be applied toward non-business income and any leftover carryover to 2020. So, the entire 2018 NOL is carried to 2020 and $0 is applied to 2019 income. Is this right?
