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Screen MJDETCO - Detroit NOL and Capital Loss Carryovers (1120)

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Net Operating Loss Carryover

Income (Loss)
The
Income (Loss)
 boxes should reflect the taxable income or net operating loss for each of the preceding periods. Enter the taxable income or net operating loss from Form 5297 for each of the prior taxable years. Enter income amounts as positive numbers and loss amounts as negative numbers.
Prior Year (Income Offset) NOL Utilized
The application adds the amount in this box to the income or loss reflected in the
Income (Loss)
 boxes to determine if a net operating loss (NOL) amount is available for carryover. If the
Income (Loss)
column is positive, enter a negative number for the amount of NOL deductions reflected on Form 5297. If the
Income (Loss)
 column is negative, enter a positive number for the amount of NOL used in prior years.
For example, a $10,000 NOL was generated in the fifth preceding taxable year; $2,000 of the NOL was used in the fourth preceding taxable year; $3,000 was used in the third preceding taxable year; there was a $5,000 loss in the second preceding taxable year; and $4,000 of the NOL was used in the first preceding taxable year. The amounts should be entered as shown in the following table.
Preceding Tax Year
Income (Loss)
Prior Year (Income Offset) NOL Utilized
5th
(10,000)
9,000
4th
2,000
(2,000)
3rd
3,000
(3,000)
2nd
(5,000)
1st
4,000
(4,000)
Net operating loss footnote
Enter information regarding net operating loss adjustments in the statement. This information prints as an attachment to the return.

Net Capital Loss

Net Capital Gain (Net Capital Loss)
Enter the capital gain or loss information for each of the five prior taxable years. The application uses this information to calculate the amount of net capital loss carryover on Form 5297 and the Detroit Net Capital Loss Carryover Worksheet.
Prior Year (Gain Offset) or Loss Utilized
Enter the amount from the
Net Capital Gain (Net Capital Loss)
column that was offset or used. Enter gains offset by capital loss carryovers as negative amounts. Enter losses used as carryovers as positive amounts. The application adds this amount to the
Net Capital Gain (Net Capital Loss)
column to determine if there's a capital loss carryforward.

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