Where do I enter NOL number in Proseries Basic 2018?

[swongtax]

I need to enter NOL in Proseries Basic.  Where do I enter this? Other income as a negative number?  If I do this, Form 1040 will have a double negative number (one number for the rental loss, and another number for the NOL), so that doubles the amount of loss, looks strange. is this correct?

[TaxGuyBill]

Yes, if you have an NOL that is being carried from a previous year, it would show up on Line 21 as a negative number.

However, you said "so that doubles the amount of loss".  You aren't trying to enter the current year's loss as a NOL on the current year, are you?

[swongtax]

Current year rental loss -20643 Schedule 1 line 17, current year NOL is also 20643 schedule 1 Line 21 as a negative number -20643, Line 41 Schedule 1 becomes -41286, looks strange.

[TaxGuyBill]

The NOL that is created on the current year return does NOT go on Line 21.  There is no direct mention of a current year NOL on a tax return, other than that it shows negative income.

[swongtax]

So do I just make a note that current year has a NOL, include a statement of calculations to show this and file this statement with the return, until the following year?  In the following year, how do I show the carryover NOL?

[swongtax]

Do I need to attach a statement on the current year return to explain the NOL number to carryover to next year?

[TaxGuyBill]

I don't think so, I think that statement is only required on the year you claim the carryover (next year).
https://www.irs.gov/publications/p536#en_US_2018_publink1000177402

[swongtax]

OK, so it is important to select Election 175b3 on the current year return to forgo carryback, and that is the only thing that I should do on the current year return?  

[TaxGuyBill]

Except for certain things like farming, there is no longer a carryback, so you don't need to make that election anymore (it automatically carries forward).

[swongtax]

That's what the election forms say.  Thank you!  This NOL stuff is difficult to understand.  So it is up to us to review the previous year's return and determine if there is a NOL the previous year to carry forward from new clients, i guess.

[IRonMaN · Accepted solution]

There is a federal carryover worksheet for stuff like that.