Carry back a net operating loss for proforma'd clients
Do the following to carry back a net operating loss for proforma'd clients:
note
Net Operating Losses (NOL) from farming operations need to be carried back using either Form 1045 or Form 1040X, unless you mark the
Elect to relinquish carryback of farm NOL incurred during the current tax year
checkbox on the 1045
screen, in the 1045 & NOL
folder. These instructions cover NOL carrybacks on Form 1045.- Go to the1045screen in the1045 & NOLfolder.
- Mark theFarm loss carryback on Form 1045checkbox. This is required to calculate Form 1045.
- Go to the1045-2screen.
- Review the before amounts and correct any wrong amounts. Leave the after amounts blank for now.
- Close the client in the current year and open the client for the 1st carryback year that the loss is allowed to be carried back.
- Go to theNOLCOscreen, located under the1045 & NOLfolder.
- In the NOL carryback section, enter the amount of the current-year net operating loss that was calculated on the Net Operating Loss Worksheet 1 (or portion of the loss applicable to the year carried back) as positive numbers.
- Enter the total AMT NOL amount from the AMT Net Operating Loss Calculation Worksheet 2 in theAMTfields.
- You'll need to enter amounts from this return in the current-year return. Print the return so you can reference the amounts.
- Close the prior-year client return.
- Open the current-year client.
- Go to the1045-2screen in the1045 & NOLfolder.
- Enter the refigured prior-year after amounts.
