If I am filing a 2019 form 1120 with a NOL carryforward/carryover from 2018, and my carryover amount exceeds 80% of net income, should I put the full amount of the NOL carryover on line 29a of the form 1120?
Or should I only fill in the amount of the NOL carryover up to 80% of the net income?
(For whoever is marking my questions as spam, please stop - if I am breaking any rules of the forum please message me about it and I will fix/delete my post. Thank you).
The carryover needs to be calculated in the case of C corporations.
See https://www.irs.gov/publications/p542#en_US_201809_publink1000257875
I am fairly certain that TurboTax Business does not automatically calculate the amount of the carryover at this point, but there may be program enhancements in future updates.
Yes, I am trying to calculate it right now. From the form 1120 instructions the IRS mentions: "Enter on line 29a the total NOL carryovers from other tax years, but do not enter more than the corporation's taxable income (after special deductions). "
This is unclear to me whether that means I should enter the full amount of the NOL carryover that I have, or just the amount of the carryover up to 80% of the taxable income.
Reading the instructions again, it appears to mean that: on line 29a I can only enter an NOL amount up to 100% of the taxable income. But the actual NOL deduction that is used would still only be up to 80% of the taxable income. Can anyone confirm?