1120 Net Operating Loss
Net Operating Loss or NOLs aren't added in Federal 1120-S returns. If the S corporation was previously a U.S. Corporation, there is input for NOL under the folder. The NOL screens found here are for Federal informational purposes only, but will affect some state returns that accept NOL deductions.
note
An NOL deduction won't calculate on the 1120-S return since the 1120-S return doesn't have a line for NOL like a U.S. Corp return does. For more information, consult the IRS instructions.
How are net operating loss carryovers entered?
GoSystem Tax offers data entry areas to calculate and track computed and historical NOL carryovers. Depending on the type of return, GoSystem Tax tracks NOLs on a single company or consolidated company basis.
Data Entry
To enter NOL data in a first-year locator or override NOL rollover data, go to
Organizer | Income and Deductions | Deductions | Net Operating Loss
. There are separate tabs for Non-SRLY, S 382, and SRLY NOLs.- Year Ending (Override) - Override the default ending year of the locator. Typically used for short period returns. Enter years as MM/DD/YYYY. The entered year will transfer to all tabs.
- Original NOL - The original calculated NOL amount recorded in the year in which it was calculated.
- Carryover to YYYY - The NOL amount that can be used in future years. These amounts are calculated from the original NOL less the amount used in the related profit year after the year in which the NOL originated. Unused amounts rolled over can be traced back to .
- Amount Utilized (Override) - Overrides the GoSystem Tax calculated amount to be used from a specific year in the current year on a single company basis. Use this field if the locator is a single-company return. This field isnotto be used for reflecting amounts that were used in prior years; it is for current year utilization.
- NOL Converted from Contributions (Override) - The contribution amount that was converted to an NOL.
- Parent or Subsidiary Utilization - Overrides the GoSystem Tax calculated amount to be used for a specific year on a consolidated basis. This field is used after a consolidation has been completed and the consolidated NOL with applied limitations are allocated back to individual members (parents and subsidiaries) of the consolidation.
Don't enter the current year amounts on a top consolidator or single company return.
GoSystem Tax uses the oldest available amount from this screen in its current-year calculation of available NOL.
Reviewing Calculations
GoSystem Tax provides many workpaper screens to view the calculations regarding NOLs. Go to tab and drill down on line 29a. Drill down further into the various worksheets.
Overriding
All calculated NOLs can be overridden in the Net Operating Losses section in .
Printing Schedules
Non-SRLY and SRLY NOL Carryover Schedules will print automatically as long as there is a carryover amount. Go to and verify there is a Total in the Carryover to YYYY column. If there is no Total and you want to force the carryover schedule to print, enter NONE in this column for the most recent year. For S 382 NOLs, there needs to be a Limited Amount entered for each selected year for the schedule to print.
Also verify that the schedules are not suppressed. The Non-SRLY NOL tab contains a print suppression option at the top. There are also several print suppression options under the tab in the section for Page 1 Schedules.
How can the AMT NOL carryover schedule be completed?
To enter Net Operating Losses for AMT purposes, go to or
AMT NOL without 90% AMTI Limit
