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Screen NOL - Net Operating Loss, Section 179 and Contribution Carryovers (1120)

Net Operating Loss Carryover

The
Income (Loss)
 fields should reflect the taxable income or net operating loss for each of the preceding periods. Enter NOLs as negative numbers for each of the prior tax years. This is the equivalent of Form 1120, Taxable income before net operating loss deduction and special deductions less Special deductions.
Enter the net amount of the adjustments due to discharge of indebtedness (IRC 108(b)) and charitable contributions (Reg. 1.170A-11(c)(2) and Revenue Ruling 76-145) for each of the prior taxable periods with losses. Discharges of indebtedness reduce the amount of the NOL and should be entered as positive numbers. Reclassification of contributions increases the NOL and should be entered as negative numbers.
The application adds this amount to the income or loss reflected in the
Income (Loss)
 and
Adjustments To NOL
 fields to determine the amount available for carryover or carryback. Enter the amount of the loss reflected in the
Income (Loss)
 field that has been utilized in prior years as a positive number, and the amount that has been offset by NOL as a negative number.
Leave this field blank to calculate the Consolidated NOL Carryover and Carryback Worksheet using the combined amounts from the parent and all subsidiaries.

Contributions

Enter the amount of each year's excess contributions that have been utilized and are no longer available as a deduction. This amount is subtracted from the amount in the
Excess Contributions
 field to determine the carryover available to the current year.
This field must include the amount of the charitable contributions that were reclassified to an NOL carryover per Reg. 1.170A-11(c)(2) and Revenue Ruling 76-145.

Disallowed business interest expense

This optional statement allows the tracking of member’s disallowed business interest expense carryovers when the consolidated amounts are different from the member’s individual amounts.
The statement for Consolidated Disallowed Business Interest – Allocation of Current Year Amounts, will automatically print when there is current year disallowed business interest from more than one member return which will be carried over. The statement will show the disallowed business interest carryover allocated to the members in the consolidated group. These amounts will be used in the following year to adjust the carryover amounts at the member level to align with the consolidated amounts.
The statement for Consolidated Disallowed Business Interest Carryover – Allocation of Utilized Amounts, will show the utilized amounts of the members. Prior year amount including original and utilized amounts should be entered in this statement at the member level.
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