NOL Instructions

[veritas]

I am reading TTB instructions starting on page 8-16.

I don't see anything describing how to deal with passive loss deductions that had been suspended in the carryback year?

I'm reading the instructions on page 8 of form 1045 and it seems to suggest that passive losses among other items are changed by the nol deduction to the carry back year.

I edited the last sentence and removed the word "not".

[Bees Knees]

You didn't read far enough. TTB, page 8-17 says:

How to Calculate an NOL Carryforward
To prevent an NOL from causing a double deduction, the amount of
an NOL that is not used up in the initial carryback or carryforward
year must be adjusted before it can be used again in the following
year. The adjustment to the unused NOL is calculated by modifying
the AGI for the year the NOL was carried to. The following income
and deductions must be refi gured to determine modifi ed AGI.
• The special allowance for passive activity losses from rental real
estate activities.
• Taxable Social Security benefi ts.
• IRA deduction.
• Excludable savings bond interest.
• Excludable employer-provided adoption
benefi ts.
• The student loan interest deduction.
• The tuition and fees deduction.
The following itemized deductions are refi gured using modifi ed
AGI for NOL purposes:
• Medical expenses.
• Charitable contributions.
• Casualty and theft losses.
• Miscellaneous itemized deductions subject to the 2% AGI
limitation.
Once items of income and deductions are refi gured using modifi
ed AGI, the amount of the NOL that is considered to have been
used up can be calculated. Use Schedule B, Form 1045, to determine
the NOL deduction for each carryback year and the amount
to be carried forward, if not fully absorbed in the year it is fi rst
carried to. Use the worksheet in the Form 1045 instructions if
itemized deductions are limited in a carryback or carryforward
year. Use Schedule B, Form 1045, as a worksheet to calculate the
unused NOL, even if Form 1045 is not being used to carry the
initial NOL back.

[veritas]

Well heck

I guess I didn't.

Thanks Bees!