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I have Schedule C loss carryforward from previous year but it is not being applied to current year Schedule C income to lower my tax liability. Is there a certain box that needs to be checked off or a specific way/method it needs to be done?
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You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.
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I am not looking for individual support but as a tax preparer using Proseries Basic.
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Schedule C loss does not carryover, unless it is a NOL. Or are you talking about home office loss carryover?
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It is a NOL
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I don't need lectures.
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It will be on the NOL worksheet. Find it in forms lookup.
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@Karim - Texas wrote:
It is a NOL
A NOL is when the entire tax return has net loss. That is different than a Schedule C loss (although a Schedule C loss could cause the a NOL/net loss over the entire tax return).
If you have a NOL, ProSeries Basic does not calculate the NOL or carry it forward. You will need to manually calculate it and enter the allowable NOL amount into the software.
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@TaxGuyBill thanks Bill, did not know basic did not carry it over.
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That is a very good answer. I did not know that Proseries basic does not do that automatically.
It is on Schedule C (Form 8995-A) Loss Netting and Carry Forward. Can you please help me a little bit more by letting me know on which schedule and which box to enter the figure?
Really appreciate your answer.
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" Schedule C (Form 8995-A) Loss Netting and Carry Forward"
That sounds like a QBI carryover, not an NOL.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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@Just-Lisa-Now- jinx
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And they don't reduce income.
@Karim - Texas please follow the numbers to see how that carryover QBI loss affects the QBI in the current year. It will only reduce the income that the QBI deduction is calculated on, not income on the tax return.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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@Karim - Texas wrote:
I don't need lectures.
You need warnings about what happens when you take on work for which you are not qualified or trained. If, indeed, you are working on someone else's return. Refer the client to someone who understands NOLs.
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@Karim - Texas wrote:
It is on Schedule C (Form 8995-A) Loss Netting and Carry Forward. Can you please help me a little bit more by letting me know on which schedule and which box to enter the figure?
As others noted, that is a completely different kind of carryover.
I don't mean to offend you, but your comments show that this tax return is well above your skill and knowledge. You should either decline this client and/or do some extensive continuing education about preparing tax returns for a business on Schedule C.