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This article applies to:

  • Product: GoSystem Tax RS
  • Return type: 1120 Corporation
  • Subject: insurance

Limitation of Nonlife NOL against life subgroup income

The limitation of Nonlife NOLs against life subgroup income is done automatically in the tax application. The 35 percent limitation is automatically calculated in the top consolidation of the tax return. The computation is the lesser of the available Nonlife consolidated NOL or the consolidated life subgroup taxable income after capital loss offset. This computation is done on the yellow workpaper screen.
Follow these steps to view computation screens:
  1. Go to
    Tax Forms
    Federal
    1120 Life-Nonlife Consolidation
    1120 Corporate Tax Return
    .
  2. On the
    1120, Page 1
     tab, go to
    Tax
    Refundable Credits
    Payments
     section. Find
    line 30 - Taxable income
    . Select the link in the field to go to the yellow workpaper.
  3. Select
    1120, Page 1, line 28 minus line 29c
    .
  4. The Life-Nonlife Consolidated Taxable Income workpaper displays. Go to item 7,
    Consol. OLD
     or
    NOL offset (*)
    .
  5. Select
    Nonlife against Life
     in Nonlife subgroup column 2 to go to the
    Consolidated subgroup OLD
     or
    NOL Utilized
     workpaper.
  6. Go to item 2,
    Limitation on subgroup losses
    . Select
    Nonlife against Life
     in the Nonlife subgroup column.
  7. The
    Limitation on Nonlife NOL Utilization per Reg. 1.1502-47(m)(4)(x)
     worksheet displays.

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