NOLs and Form 172

[freshy70]

2 questions.

1 - How do you get Form 172 to generate? Support article says it generates automatically, but I cannot see it even after entering information related to NOLs.

2 - How do you determine taxable income prior to NOLs? If we have to manually override the amount of the NOL absorbed in the current year, we must know the taxable income before NOLs.

[George4Tacks]

Here is a general method to find input for something on a return. 

Check Return > Forms > All > Click US or the State > Find the form (use search) > look for boxes or lines shaded in blue. Click the blue shaded area for what you want. 

In this case I would click page 2 of 172 where it says 1st preceding tax year ended. 

I hope this gets you there. If not, give some numbers and years you are trying to get work. If a current year NOL, it should be automatic. 

[freshy70]

Thanks. Not seeing 172 at all. As you suggested, providing some numbers that I entered.

2018 NOL $47,228, $2,993 available for carryover in 2024 - $2,993 absorbed 2024

2019 NOL $40,181, $40,181 available for carryover in 2024 - $? absorbed in 2024 (depends on what taxable income before NOL is)

2020 NOL $26,914, $26,914 available for carryover in 2024 - $0 absorbed in 2024

Before I limit the NOL to the numbers absorbed at 80% of taxable income, Statement 1 for Schedule 1 Line 8a - Computation of 2024 Taxable Income for NOL Utilization tells me 2024 taxable income before NOL deduction is $21,174. Is this the number I should use to apply the 80% limitation? It's confusing because if enter anything for NOLs absorbed, the $21,174 changes to $25,314 on the worksheet.

I'm not confident that I'm determining the correct amount to limit the NOLs against.

[IntuitKatie]

Hi @freshy70,
Thanks for posting your question! Here’s a couple support articles that may help with this:

Common questions about Net Operating Losses (NOLs), Form 172 and diagnostic ref 61199 in ProConnect ...

Entering net operating loss (NOL) carryovers and carrybacks in Form 1120 in ProConnect Tax

If you need further assistance with this we would reach out to ProConnect Support, as they can best help with your specific situation.
Looking forward to seeing more of your contributions in the Community!

[freshy70 · Accepted solution]

The answer to this is as follows I believe. Form 172 will not generate unless it is a current year NOL. 

To determine taxable income before NOL deduction, restrict the application of any NOLs from prior years by entering -1 in the override screen for how much of each prior year's NOL was absorbed in the current year. 

Look at the statements and you'll see a line that says "202X Taxable income before NOL deduction" The number is taxable income plus QBI deduction. 

Posting this for future reference or if anyone else has the same question.