NOL

Forum|Forum|4 years ago
January 31, 2022
1 reply
16 views

I am completely stumped. Line 14 a and 14 b in Carryover worksheet has 2 column for 2020 and 2021.

But my client has NOL from 2019 so no column for 2019 year. Where can I enter 2019 NOL and also client has QBI carryforward of that year,2019, but front line 29 there is not a box for 2019.

Thanks in advance!

ProSeries Professional

This topic has been closed for replies.

Best answer by TaxGuyBill

I have checked 2019 and 2020 client return and tax preparer did not make "Waive the Carryback" election to Forego section 172. Taxpayer does not want to use carryback at all since nothing income before 2019. For 2021 he has enough income and want to use NOL from 2019. That is why I need a help moving forward.

@HOPE2 wrote:

Taxpayer does not want to use carryback at all since nothing income before 2019.

It does not matter if he WANTS to carry it back or not - it gets carried back.

Even if he chooses not to amend, you need to recalculate the NOL based on carrying it back for each year 2014, 2015, 2016, 2017 and 2018. It is likely it will be reduced, especially if there is ANY income in any of those years.

After you recalculate *IF* there is any NOL to carry forward, then it carries to 2020, then to 2021.

ProSeries does not keep track of which year a NOL is from, so you need to manually do that. Yes, the carryforward amounts go on Line 14 of the carryover worksheet. The usable NOL should show up as "other income".

F

Frustrated-in-IL

Level 8

A 2019 NOL has to be carried back unless you made a timely filed election to forego carryback.

Assuming you made the election, the 2019 NOL would have been carried forward to 2020. If not used entirely on the 2020 return, the remaining amount would be included in the amount being carried to 2021.

QBI comes forward in same manner.

HOPE2Author

Level 7

Thanks. Client is new for me and the election would have been created for carryback but it is suppose to carryforward. I was wondering for carryforward case the election should it have been created? If not, my question is about line 14a , 14 b that 2019 NOL and AMT should be entered but no see 2019 year and line 29 have no 2019 year for QBI as well.

T

TaxGuyBill

Level 15

Thanks in advance. For carryforward QBI loss can we do partially. However, net QBI for 2021 is enough to offset all QBI which carried forward from 2019 and 2020. I see if I do it all of carryforward negative QBI, client should pay more tax.

Enter the full amount of negative QBI carryforward. The program SHOULD only offset the proper amount and automatically carry the rest forward.

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