Investors & landlords

fbgoldwing · ‎March 4, 2020

(3. I will want to send the Worksheet with my tax return to show how I computed the carry forward. In order to do that I will need to file my taxes manually.)

If you completed the worksheet on the computer, you can copy and paste it into one of the fields on the Explanation Statement form. You will need to format it for readability by cursoring down line by line and move the amounts to the side with a dotted line so that it does not look all jumbled. You probably won't get it exact, but it will be readable.

EXAMPLE:

"STATEMENT 1
FORM 1040, SCHEDULE 1, LINE 21
2007 NOL UTILIZATION "
INITIAL LOSS                    ...............................   41,896
NOL CARRYOVER AVAILABLE IN 2018 ................................   41,896
MODIFED TAXABLE INCOME (FROM LINE 9 BELOW) ..................   37,317
NOL ABSORBED THIS YEAR          .................................  37,317
TAXABLE INCOME AFTER NOL DEDUCTION ................................   0
NOL CARRYOVER TO 2019          .................................   4,579
"WORKSHEET FOR NOL CARRYOVER
COMPUTED FOR FIRST NOL THAT REDUCES TAXABLE INCOME BELOW ZERO PER IRS PUBLICATION 536,
SCHEDULE B "

NOL YEAR: 2007
USE YOUR 2018 FORM 1040 OR FORM 1040NR TO COMPLETE THIS WORKSHEET
1. NOL DEDUCTION FOR THE NOL YEAR ENTERED ABOVE ...............    41,896
2. TAXABLE INCOME BEFORE NOL DEDUCTION FOR 2006 AND LATER YEARS..     7,717
3. NET CAPITAL LOSS DEDUCTION, 1040 SCHEDULE 1, Line 13 ..........  3,000