George,

You have always replied to my questions and I thank you. I have a client who has been flakey in filing timely returns going back a few years now. She is a realtor and is pending a levy of tax on the 2016 return I filed 3 years late. She had an investment property that she purchased to renovate in 2016. It had been condemned. Her costs exceeded what she sold it for and in 2018 it developed a large capital loss and an NOL of $246,704. I can carry it back 2013 and go forward I know. She had no taxable income in 13, 14, and 15. Just SE tax. In 2016, IRS adjusted the return I filed disallowing most of her Sch C deductions and sent her a bill and the time to dispute it. She let the time expire and did not notify me timely. I told her we would use the NOL carryback to eliminate the income tax and recoup the Excess PTC she had to repay because her MAGI was too high on the return IRS calculated after denying her deductions. Lacerte software for form 1045 has you enter SE tax on the original I assume. I understand that SE tax cannot be reduced from an NOL carryback. But it wipes it out when I hit calculate. Should I use 1045 in this case or 1040X. I called my CPA friend who told me she never does any carrybacks. Weird. Any help would be appreciated.