Prepare Form 1139
Prepare Form 1139 in UltraTax CS to apply a carryback of a corporate net operating loss and enter the required carryback information.
Do the following to prepare Form 1139.
note
- The IRS Instructions for Form 1139 refer to a repeal of the NOL carryback:
For losses incurred in tax years beginning after December 31, 2020, the NOL carryback rules apply only for farming losses and losses from insurance companies, other than life insurance companies
Before you begin
1139
screen.
- Obtain copies of the corporation's original returns for years you're carrying information back to.
- Recalculate the prior-year's tax returns that are affected by the carryback.
- Using the corporation's original returns and the recalculated returns, complete the information requested in the1139screen.
Follow these steps to complete the
1139
screen:- Mark theCalculate carryback of net operating losscheckbox.
- Enter the preceding years and the corresponding before carryback amounts in theCarryback Informationtable.
- Go to theNOLtab and enter information in theIncome (Loss)fields for the relevant years.noteTheIncome (Loss)fields will need to be completed for the1139screen to calculate.
- Close the current-year return.
- Open the earliest prior-year return affected by the carryback.
- Enter the NOL carryback information in theNet operating lossfield on theAmend-2screen inSeparate Filingsfolder.
- Use the recalculated return to enter the After Carryback information in the current-year return.
- Close the prior-year return.
- Open the current-year return.
- Go to the1139screen in theCarryoversfolder.
- Complete the fields in theAfter Carrybackcolumn for the prior-year return.
- Use the Net Operating Loss Worksheet to determine the remaining NOL.
- Use the remaining NOL and repeat steps 4-12 for the remaining years.
