Electing to forego or waive NOL carryback for a corporate or consolidated return

For tax year 2020 and prior, if a corporation has an NOL, it can usually elect to waive the entire carryback period for the NOL and carry the NOL to future tax years. To do this, you need to check the box on Schedule K, line 11 and file the return by the due date, including extensions. The corporation must have a current year NOL for Schedule K, line 11 to check.

You can elect to....

• Forego the carryback for a net operating loss (NOL) for a corporate return
• Waive the carryback for consolidated return per section 172(b)(3)

... in the Corporate module of Lacerte. Both of these options use the same steps.

Follow these steps to forego or waive an NOL carryback in the program:

1. Go to Screen 23.1, Regular Net Operating Loss Deduction.
2. Check the box labeled Elect to forego carryback.
   • This will tell the program to include the NOL carryover in General Information and proforma the NOL carryover to the next tax year.
   • Lacerte will also check the box on Form 1120, Schedule K, line 11.