Quote Originally Posted by Rapid Robert View Post
No, no other unusual income items. Just the four that I already mentioned: interest, pension, business, Line 21.

Good catch on the SEHI keeping the AGI at a fixed number! I wasn't looking at that.

So as a further test, I moved the SEHI to Schedule A medical expense only (which goes above AGI threshold for this taxpayer, so it matters). Now the NOL goes away. But as soon as I move the Schedule C net profit to zero, the $50 NOL pops up again. (with the charity amount still in Schedule A). Then, if I remove the charity from Schedule A, the NOL this time does NOT go away.

I'm still puzzled how a $0 net profit in business yields a $50 net operating loss. I know some of the items on Schedule A can be considered "not nonbusiness".
Other than state taxes on A being allocated to business income, I don't see where A items would have an effect.

When you are playing around with charity deductions, does the change make line 41 positive?

Pro has a NOL class worksheet that shows the allocation between business and non-business. Your software may have something similar.