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Level 3
posted Mar 5, 2022 5:40:08 PM

Inherited a 2016 NOL Carryforward in 2020

In 2020, my individual trust inherited a NOL Carryforward on a final K-1 from my mother's trust (the parent trust to my trust). The NOL Carryforward originated in 2016 when my mother sold real estate property. For purposes of the 80% NOL limitation, TurboTax Business is assuming that the NOL originated in 2020 because that's when I filed my first 1041 and TT is pulling the data from my 2020 data file into my 2021 return.  But since, the NOL actually originated in 2016, it should not be subject to the 80% limitation rule. How do I tell TurboTax Business 2021 that the NOL originated pre-2017? 

P.S. This problem did not come up on my 2020 -1041 return because the Cares Act temporarily suspended the 80% limitation rule. 

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1 Replies
Level 15
Mar 5, 2022 7:33:43 PM

Have you looked at the NOL Worksheet in Forms Mode?

 

You may have to do an override at this point.