I have NOL for 2015 and have elected carryforward. Do I need to file 1045 since I carryforward only ? Do I show NOL on other income of 2016 1040 and show computation.

michael_miller17 · ‎June 7, 2019

bigmike2srv · ‎June 7, 2019

Do I need to file an Ammended 2016 return, since I already filed without having claimed the NOL?

TaxGuyBill · ‎June 7, 2019

Yes, if you had a NOL in a prior year that is being carried forward to 2016, you need to amend your return to include it.

Fern · ‎June 7, 2019

You do not need to file Form 1045 to carryforward an NOL to a subsequent tax year.  Form 1045 only must be used for carryback to a prior tax year.

In order to carry forward a NOL, you would have to have filed a statement waiving the carryback period on your original return or on an amended return within 6 months of the due date of the return (excluding extensions). So, your 2015 tax return must include a statement that you are waiving the carryback period.

When you carry forward your NOL to a tax year after the NOL year, you will list your NOL deduction as a negative figure on the “Other income” line of Form 1040. You must attach a statement that shows all the important facts about the NOL. Your statement should include a computation showing how you figured the NOL deduction. If you deduct more than one NOL in the same year, your statement must cover each of them.

Form 1045 Schedule A is used to calculate the Net Operating Loss (NOL).  While you do not need to file Form 1045, you may want to complete it so you have captured all of the important facts about the NOL.

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henry-gindt · ‎June 7, 2019

How do you attach a statement explaining the NOL calculation on Turbotax? Also, the computation showing how you figured the NOL is simply the row 12 or 41 line of the 1040 form, correct?

Thank you!

henry-gindt · ‎June 7, 2019

Can the carryforward NOL be used in the amount of the elector's choosing? For instance, with an $100,000 NOL and assuming $250,000 of taxable income each year, can this $100,000 be spread evenly $10,000 per years for subsequent years or would all $100,000 need to be used in the first carryforward year?

TaxGuyBill · ‎June 7, 2019

@henry.gindt No, and No.

Although the NOL is sometimes Line 41, you need to fill out Schedule A of Form 1045 to determine what the NOL is.

The NOL needs to be fully used in whatever year it is carried to. It can not be split up unless it creates another NOL in the year that it is carried to.

darlenehomebusin · ‎June 7, 2019

Waiving the Carryback Period

You can choose not to carry back your NOL. If you make this choice, then you can use your NOL only in the 20-year carryforward period. (This choice means you also choose not to carry back any alternative tax NOL.)

To make this choice, attach a statement to your original return filed by the due date (including extensions) for the NOL year. This statement must show that you are choosing to waive the carryback period under section 172(b)(3).

If you filed your original return on time but did not file the statement with it, you can make this choice on an amended return filed within 6 months of the due date of the return (excluding extensions). Attach a statement to your amended return, and write “Filed pursuant to section 301.9100-2” at the top of the statement.

Once you choose to waive the carryback period, it generally is irrevocable. If you choose to waive the carryback period for more than one NOL, you must make a separate choice and attach a separate statement for each NOL year.

alan24bell · ‎June 7, 2019

I have questions about filing my 2016 return using the 2016 "Home and Business" Turbo Tax version.

Did you answer the question "How do you attach a statement explaining the NOL calculation on TurboTax?" I didn't see a response. I'm completing my 2016 return in which I had a business loss which resulted in a negative number on line 41. I'm not interested in doing a carry back and only interested in doing a carry forward.

Secondly, once I compute the NOL using IRS Form 1045-A, where does this number get inserted, and are there any other modifications that need to be made.

Lastly, is the information on the 2016 tax return automatically carried to the 2017 return, or will I need to do additional computation and insertion as was done on the 2016 return?

TaxGuyBill · ‎June 7, 2019

@alan24bell Are you in a Federally Declared Disaster Area, and your tax extension is until January 31st? If not, it is too late to carry it forward, and it MUST be carried back now to your 2014 tax return.

As for how to attach a statement explaining the NOL, I would include Schedule A of Form 1045 and mail it with the rest of your tax return (it is too late to e-file through TurboTax anyways).

No, TurboTax does not do anything automatically with NOLs, so you need to manually insert it. It will show up as a negative number on Line 21 of your Form 1040. If you type "NOL" into the search box in the program, it should bring you right to the correct area.

alan24bell · ‎June 7, 2019

I've not filed my 2016 return. It's being filed for the first time. I'm just now filing it and had been waiting for information about the business loss to file it.

I'm not in a Federally Declared Disaster Area.

I always mail in the return, so hadn't planned to e-file.

TaxGuyBill · ‎June 7, 2019

Then it is too late to carry it forward (it had to be done by the due date of your tax return). You need to amend your 2014 tax return to use the NOL.
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alan24bell · ‎June 7, 2019

Did you mean to say my 2015 tax return needs to be amended? Won't amending my 2015 return affect my 2016 return? Which should be done first, the amended 2015 return or to file the 2016 return?

TaxGuyBill · ‎June 7, 2019

Prepare the 2016 tax return. Then amend the 2014 tax return (not 2015) to include the NOL.

In the event the NOL is not used up in 2014, then unused amount would carry to 2015 (so you would also need to amend 2015).

No, amending to add a NOL would not affect the 2016 tax return.

kaymanalo · ‎June 7, 2019

I have an individual NOL from 2014 when I was single. I elected to waive the carryback period on that return, so I did not file form 1045. In 2015 I married, and my income for 2015 and 2016 were also negative, but net positive combined with my husband's income.

For 2017 I had positive income, so I would like to apply some of the NOL from 2014 to this tax return. I want to confirm that not filing the 1045 form does not affect my ability to use the NOL carryforward, and that I need to use Schedule A of Form 1045 to determine the NOL amount, and the subsequent form on there to determine what to carryover to the 2018 tax return. I also want to confirm I do not need to fill out any other special forms not included in TurboTax to do so. Thank you!

I have NOL for 2015 and have elected carryforward. Do I need to file 1045 since I carryforward only ? Do I show NOL on other income of 2016 1040 and show computation.

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