By FTB definition, a NOL is: If your deductions and losses are greater than your income from all sources in a tax year, you may have a net operating loss (NOL).
https://www.ftb.ca.gov/file/business/deductions/net-operating-loss.html
Question I have is why is this not automatically carrying over to the 3805V form and subsequently to the following year's information? I had a client with an adjusted gross income of -50,000 in 2020, this should have carried over to 2021's CA 3805V and against ordinary income. Should I be entering the -50,000 manually into the 3805V page 3, with a REG code? Doesnt make sense I should do this for every K-1 with a loss, etc.?
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