Business NOL Carry forward from Form 4797 against Schedule D income

[avellil]

My business has an old Net Operating Loss I've been carrying forward.

The loss came from Sale of Business Property and reported on Form 4797. The business uses Mark to Market accounting method.

This year I have no income to report on 4797. Can I still use the NOL Carryover against my Business Schedule D income?

Turbotax 2022 is showing 0 in the 2021 Net Operating Loss Carryover box, and a positive number in the ATM Net Operating Loss Carryover box.

[Anonymous_ · Accepted solution]

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

Note the limitations, but you can use an NOL to offset all other types of income.

Further, TurboTax does not calculate or transfer NOLs; you have to manually calculate your NOL and then input that figure into the program.

[Mike9241]

what year was the NOL? for years after 2020 only an NOL carryforward is allowed. prior to that unless you made an election to carry forward an NOL included with the return an NOL carryback was required before any remaining could be carried forward. while you have a loss on form 4797 that may not be the correct amount of your NOL.

the short version of how the NOL is computed Is the excess of business losses over business income reduced by the excess, if any, of nonbusiness income or nonbusiness losses and expenses. 

form 1045 schedule A can be used to compute the NOL

https://www.irs.gov/forms-pubs/about-form-1045 

[avellil]

Thank you for that @Anonymous_  
Follow up question: if Turbotax doesn’t calculate NOL, where does the value in the AMT Carry forward box come from? I did not enter it.

Also, the Turbotax generated “Capital loss carryforward” sheet from 2021 on line 8 reads “short term capital loss carryforward to 2022” and shows a numeric value 

[Anonymous_]

I am not certain which figure you are seeing but TurboTax will carry forward excess capital losses.

[avellil]

Thank you @Mike9241 

The original stock trading losses are from 2011 and were carried back for two years. Since then, I’ve been carrying them forward. At the time I was using a CPA to do my taxes.
Using Turbotax this year, I noticed the software left the NOL box empty, but filled in the equivalent AMT NOL box. So, I was wondering if this was because I had no trading gains (4797) to offset with the trading losses I was carrying forward.

[avellil]

Thank you for clarifying, @Anonymous_ 

[Mike9241]

"The original stock trading losses are from 2011 and were carried back for two years. Since then, I’ve been carrying them forward. At the time I was using a CPA to do my taxes."  this would indicate that you were treated as a trader for income tax purposes. you say the losses were reported in on form 4797 which is where traders that made the 475(f) election would report trading gains or losses.  as such the trading losses are not capital losses but ordinary business losses that generated the NOL.  every year of the carry forward the NOL would be used to offset other taxable income subject to any tax law limitations for that year. any unused would be a carryforward for 20 years from 2011.  we have no way of knowing if you amount of your NOL for regular or AMT tax purposes is correct. This is because Turbotax does not calculate NOL carryover.