2018 NOL Absorbtion in 2019

Forum|Forum|6 years ago
February 11, 2020
2 replies
15 views

I have a 2018 NOL Carryforward to 2019. I am getting a Critical Diagnostic: "The program doesn't automate the limitation of post-2017 net operating losses to 80% of taxable income before taking into account any NOL deduction. You must override the amount of post-2017 NOL Carryforward absorbed this year so it does not exceed the 80% of taxable income limit." Are you kidding me? Why do I pay the big bucks for this software??? Then when I try to do it manually in screen 15, it also changes the 1040, etc., not just the carryforward! Is Lacerte working on this? Has anyone else come up with a work around for this?

Lacerte Tax

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nanhopkins

Level 2

I have called them twice in the last two days regarding this. We noticed once we manually reduced the 2018 NOL to the 80% of taxable income, our client still had $13,000 of taxable income on line 11. However, there is no tax showing on line 12a, page 2. The two Lacerte technical support persons we talked to could not seem to understand what I was trying to tell them.

We think the system is not reducing the 2018 NOL when calculating the income tax and still thinks it is zero taxable income, which it would be if the 2018 NOL was not limited.

Very frustrating and I am with you on why do we pay this much for Lacerte and have to manually calculate something so obvious.

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bjashcpaAuthor

Level 3

Yes it is more than frustrating! I am 1 of 8 CPA's who have a group discussion/emails, etc. over the year and I am the only one still using Lacerte, they are using Ultra Tax. I used to think they were wrong, well I am beginning to think differently with this issue! I have talked with them and they aren't having to manually calculate this! Isn't that why we use software?! They also have access to all of the Form 8995-A and the related schedules! We still don't!

Vent over! If I find out anything I will let you know, please do the same. Thanks!

T

TTI Diana

Level 2

Is Ultra Tax priced similar to Lacerte?

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lindavail

Level 2

I had the same question. So are they going to calculate it? We pay a lot of money for Lacerte. I emailed them at the beginning of the week, but still no answer.

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rjskal

Level 3

This is one of several significant problems with this year's program. It's ridiculous! I presume we'll have to manually adjust QBI for post TCJA Section 179, as well!

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bjashcpaAuthor

Level 3

This is unbelievable! It is just creating more work now and forcing us to rethink our software choice!

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