Help calculating NOL

Forum|Forum|5 years ago
May 6, 2021
4 replies
31 views

I have a significant loss from my partnership this year (K-1 loss). I am attempting to calculate my net operating loss, but the directions from the IRS are somewhat confusing. Can someone please help walk me through it?

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Anonymous_

Level 15

Are you using the IRS worksheet?

See https://www.irs.gov/publications/p536#en_US_2020_publink1000177330

schloskeAuthor

Level 2

Yes, but it isn't very straightforward. I basically only have numbers for lines 1-9. Here are some random numbers to see if I am thinking correctly.

Let's say my AIG is $2,800. Line 1 is AIG minus standard deduction. So $2800 minus $24,800 so -$22,000. Is that correct thinking?

I have nothing for lines 2-5. Then line 6 is non-business deductions. Am I supposed to input the standard deduction value here too? That's what it seems by the worksheet.

Then line 7 is nonbusiness income. Let's say $12,800 for that. Line 8 is lines 5+7 so it is also $12,800.

Line 9 is the difference between lines 6 and 8 so that is $12,000.

Nothing for lines 10-23.

Line 24 combines line 1, 9,17, 21-23 for total NOL. Line 1 (-$22,000) plus line 9 ($12,000) equals $10,000 for my NOL. Is that correct? It isn't very clear, and that number doesn't really make much logical sense. Any input would be great.