cpaJA8
Level 2

It was 2019 and 2020 for the NOLs  - my fault.  Thanks for catching it.

Here is another issue with only one prior year NOL.

NOL Worksheet 1: Comp of 2021 NOL line 24=<2700>

Comp of Nonbusiness income 21,176. Nonbusiness Deducts 28,400.

Comp of 2021 Taxable income for NOL utilization: Taxable income <12,555>+NOL from 2020 and later=9,222. 2021 taxable income before NOL deduct=<3,333>.

Schedule 1 line 8A 2020 NOL utilization: Initial loss and NOL carryover avail in 2021=9222. Taxable income before NOL deduct <3,333>.  NOL absorbed=0. Taxable income after NOL deduct=0. NOL carryover to 2022=9222.

NOL worksheet 3: NOL carryover to 2022. Worksheet 1 line 25=2,700. Excess loss=0. NOL carryover to next year=2,700.

If I enter -1 for NOL absorbed, taxable income of 1,278 is created.  Do I then go back and take out the -1 and show NOL absorbed to be 1278*80% = 1022?  And if there were multiple years, would I enter -1 for NOL absorbed until that created taxable income (not a loss) and show 80% absorbed  from there?  I'm probably overthinking but appreciate the help you have already given and any additional you can provide.

 

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