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Net operating loss

Net operating loss for insurance returns

You can enter a deduction on the tax return for an amount equal to the aggregate of (1) the net operating loss (NOL) carryover, plus (2) the net operating loss carry back. The mixed group consolidation has 3 types of net operating losses that can be calculated in the return:
  • Non-SRLY net operating losses
  • SRLY net operating losses
  • S382 net operating losses
Each type of net operating loss has its own Organizer where you can enter the amounts. All entries for each loss type should be entered in the pertinent taxable entity. Depending on the type of NOL, the amount to be limited must be entered as well.
  1. Go to
    Organizer
    Carryovers, Footnotes, and Invoicing
    Carryovers
    Computed Carryover Details
    .
  2. Select the tab for carrybacks or carryovers.

Non-SRLY NOL

Enter the amount for the Non-SRLY net operating loss by year in both of the following columns: Original NOL and Carryover to XXXX, where XXXX represents the current year. Enter the amounts in the lowest level subsidiary or parent return to consolidate correctly, not in the top consolidation. There are screen instructions for amounts to be utilized, mainly for print and rollover purposes. These are consolidated to the top consolidation return and limited against other subgroup income according to the LNL eligibility checkbox, IRS rules, and the Organizer overrides. Non-SRLY NOLS are not displayed in the lower entities tax forms.
Non-SRLY NOLS are displayed in the following tax returns:
  • Nonlife subgroup Subconsolidation
  • NL top consolidation
  • LNL top consolidation.
  1. Go to
    Organizer
    Carryovers, Footnotes, and Invoicing
    Carryovers
    Computed Carryover Detail
    Carryover Detail
    Regular NOL
    Non-SRLY NOL
     tab.
  2. Mark the checkbox to suppress the print of original NOL on carryover schedules, if necessary.
  3. Enter
    Original NOL
     and
    Carryover NOL
    .
  4. Enter carryover amounts if NOL occurred before August 6, 1997.

SRLY NOL entry

Enter the amounts for the SRLY net operating losses by year in both of the following columns,
Original NOL
 and
Carryover to XXXX
, where
XXXX
 represents the current year. The amounts must be entered in the lowest level subsidiary or parent return to consolidate correctly, and not in the top consolidation.
The SRLY NOL amounts are displayed in the following tax returns:
  • a lower-level return where the amount is entered
  • the subgroup level
  • the NL subgroup Subconsolidation
  • the NL top consolidation and the LNL top consolidation
These amounts are consolidated in the top consolidation and limited to be applied against other subgroup income according to the LNL eligibility check.
Read the instructions found on the following screen to determine if you need to enter the amount utilized (mainly for print and rollover purposes).
Go to
Organizer
Carryovers, Footnotes, and Invoicing
Carryovers
Computed Carryover Detail
Carryover Detail
Regular NOL
SRLY NOL
 tab.

S382 NOL

Enter the amount for the S382 net operating loss by year in the taxable entity's parent, subsidiary, or divcon column. To consolidate the return correctly, enter both the
Carryover to XXXX
 (where
XXXX
 is the current year) and the
Limited
 amount in the lowest level subsidiary or parent return and not in the top consolidation return. Enter the limitation to process accurately. S382 NOLs must be applied against the income of its entity. Any remainder is carried forward and used against next year’s income. The
Amount Utilized
 column is the override column.
S382 NOL amounts are displayed in the following tax returns:
  • a lower-level return where the amount is entered
  • the subgroup level
  • the NL subgroup Subconsolidation
  • the NL top consolidation (topcon) and LNL top consolidation
  1. Go to
    Organizer
    Carryovers, Footnotes, and Invoicing
    Carryovers
    Carryover Detail
    Regular NOL
    S 382 NOL
     tab.
  2. Enter
    Carryover NOL
     and
    Limited Amount (Mandatory)
    .

This article applies to:

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

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