Above the Line $300 Charitable Contribution Increasing NOL

Forum|Forum|5 years ago
February 12, 2021
11 replies
57 views

The above the line $300 charitable contribution is increasing net operating losses. Also, for taxpayers that don't otherwise have an NOL, if the standard deduction is greater than AGI, a $300 NOL is being generated. Did the IRS intend for the $300 charitable contribution to generate or increase an NOL or is this a software problem? Can't find any guidance that indicates the IRS allow this.

ProSeries Professional

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G

gabletax

Level 5

Haven't dealt with an NOL yet this year, but ProSeries used to have an NOL worksheet where amounts could be allocated to business or personal. Maybe there it could be moved to the personal column.

H

HPMCPAsAuthor

Level 2

Thanks! I was able to adjust the $300 contribution on the NOL classification worksheet and work out the problem.

M

mysanity88

Level 3

I ran into this issue today. After a far bit of reading, I cannot find any guidance on how the IRS intended for this to interact with NOLs.

Can I ask where you made the adjustment to eliminate the NOL?

H

HPMCPAsAuthor

Level 2

On the NOL Classification Worksheet, I entered a ($300) adjustment on line 19 under Column B for nonbusiness income and it worked my NOL back to $-0-.

vscpanm

Level 6

Ok, that worked. Thank you.

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