41196

[#1]

The following diagnostic is generating: The taxpayer or spouse on this married filing jointly return is deceased in the current year. This return also has a net operating loss carryover. Please review and adjust (if necessary) the net operating loss carryover since the net operating loss carryover of one spouse cannot offset the income of the other spouse. I can't figure out how to adjust the worksheet to reflect that no NOL should be carrying over. Any thoughts?

[Intuit_Kallana]

Hi, on Screen 15: Net Operating Loss Deduction go to the year that has the carryover available.  Set the field NOL absorbed in 2023 (O) to "-1" for whichever is the deceased party.  This will clear the 41196 diagnostic.

[HLT]

Thanks! The taxpayer died in the current year, so this year's NOL should be allowed, but there shouldn't be a carryover allowed for next year. I can't figure out how to make the carryover portion go away without waiting until next year's tax return.

[Intuit_Kallana]

When you proforma for 2024 tax year, Lacerte will automatically remove the deceased taxpayer and subsequently any NOL amount associated with that taxpayer.  I apologize for the delayed response I was testing it really quick to verify before responding.

[HLT]

That is great! Thanks for your help.

[Intuit_Kallana]

You're welcome!