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]

If you have to zero it out, in the 2021 program, you lose the carryforward.  There is no place called "CARRYOVER ABSORBED" so the carryover amount "available" has to be deleted for the diagnostic to clear.  Is there a better alternative?

[trodneyea]

Same issue - "Carryover Absorbed" is not available in the 2021 program.  Help?!

[sjrcpa]

I have a separate WP schedule where I track carryovers and other Notes for Succeeding Years.

[debkins]

I spoke to someone from Lacerte yesterday about this, as well as the QBI business loss carryforward which has the same problem.  I was placed on hold a few times, and finally got disconnected.  I hope they are working on a fix, but I agree with you, that a separate schedule is necessary to track these carryforwards.

[sgcpa]

Does anyone know if Lacerte is working on a fix for this or are we going to have to manually make the calculation and input it for all of our clients that this relates to?