53656

[#1]

The following diagnostic is generating:

NOL #{PrefixNum}: The program doesn't automate the limitation of post-2020 net operating losses to 80% of taxable income, before taking into account any NOL deduction. You must override the amount of post-2020 NOL carryforward absorbed this year so it does not exceed the 80% of taxable income limit.

Solution:

On detail screen 15 in the 'Carryover absorbed in 2019 [O] (-1 if zero)' line, make an entry to override the program calculation for the amount of post-2017 NOL carryover absorbed in the current year, reported on Schedule 1, Other Income. Enter -1 if zero. This entry is required when the amount of a post-2017 NOL exceeds 80% of taxable income, before taking into account any NOL deduction. See IRS Publication 536 and Form 1045 instructions for more information. If ignored this diagnostic will not prevent e-file.

[debkins]

Well, apparently there was nothing wrong, just a change in how the screen is viewed.  The input screen is locked, and to  open it up so you can see the detail and change or add info, there is a button on the tool bar that needs to be clicked.   So, when you are at the screen input detail, look up at the tool bar and find the button that looks like this:  a straight, horizontal line, with an arrow pointing upward that's on top of the line, and one pointing downward below the line.  Click it, and it will open up the detail input screen.  I was told that this feature is here to avoid unintended changes.

[Kathleen1]

I'm sorry.  I must be missing something.  I don't understand how the last comment addresses the issue with the calculation having to be done manually rather than Lacerte calculating the amount to use in the current year and how much to carry over.

[debkins]

I have found that the problem is with the carryover, but sometimes the figure is correct.  I was just saying how the figure can be changed, if it is incorrect.  As far as overriding for 80% of taxable income...that is on us.

[trodneyea]

I am not seeing the "carryover absorbed" entry area.  Am I missing it?  I see "Carryover Available" but not "carryover absorbed".  I

[Paul11]

It appears Lacerte is properly limiting the Available NOL carryover to 80% of the post 2020 loss. To clear the Critical Diagnostic, enter -1 in NOL absorbed in 2022 if no NOL is applied against a gain in the current year.  That seems to remove the Critical Diagnostic.  Again, Lacerte is providing little assistance in this area and it's up to the community to work out the problem with their program.  A typical programmers making assumptions and users not being involved with the development of the program.