$300 NOL from 2020 donation deduction?

Forum|Forum|4 years ago
February 25, 2022
10 replies
24 views

Client had zero taxable income in 2020 but gave $300 in donation. Now it seems I'm getting a $300 NOL in 2021. She is a retiree with no business. Is that NOL right?

ProSeries Professional

This topic has been closed for replies.

J

jeffmcpa2010

Level 10

You know that you are spending time researching an item that affects way less than $100 of tax.

Just taking time to ask the question probably cost that much in you time.

I don't have any idea of the answer, but I try to focus on the questions I have that make a measurable difference.

Big Picture - Probably never affects anyone.

G

GretaAuthor

Level 7

Now that this client is in a far higher bracket in 2021, out pops a $300 NOL deduction. My thinking is that this is a glitch in the software, so I plan to delete the deduction manually, so as not to gum up the processing of 2021.

PATAX

Level 12

Greta the same exact thing has happened to me. I posted this question earlier and I believe the answer was that it may be correct.... the software is Computing it, but not a definitive answer. I would hope the pro series is doing it correctly and that the carry forward is accurate, and I would think that if it is not correct and ProSeries would have corrected this error by now. Maybe on the n o l explanation line just type in "nol carryforward from last year" since that is what Pro Series is doing... . Or you can just ignore and delete the carry-forward if you believe that it is inaccurate . I tried to research this online but I could not find much so I am in the same boat as you. but this is just my opinion Greta and you do what you want to do. Hope this helps.

G

GretaAuthor

Level 7

Thanks. Actually it's happening to several of my retired clients whose income comes purely from a portfolio and who were in a zero bracket in 2020. But 2021 being such a hot stock market year, they are way up in income. To me NOL implies some kind of business loss, not a charitable donation. Just feels weird to have elderly folks with portfolios claiming an NOL.

PATAX

Level 12

You're welcome Greta. Same exact thing here. I will keep researching it and if I find something definitive then I will let you know.

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