NOL carryover calculations

[Gretel]

Real stupid questions, and only because I get easily confused. I am looking at the calculations done (not by me) to determine how much of the NOL was used up. Line 6 asked for any adjustments to gross income and shows an amount. However, none of the lines on the 1040 show any amount. Someone badly messed up or am I missing something?

[TAXNJ]

Don't be

Real stupid questions, and only because I get easily confused. I am looking at the calculations done (not by me) to determine how much of the NOL was used up. Line 6 asked for any adjustments to gross income and shows an amount. However, none of the lines on the 1040 show any amount. Someone badly messed up or am I missing something?

Don't be confused. Follow this and the form. By the way if you did not do it how did you get involved? Can't tell from your post.

http://www.irs.gov/pub/irs-pdf/p536.pdf

[Gretel]

Here is my involvement: I have to do a Schedule J and the amount used up by the NOL is different if there actually is a mysterious adjustment to income.

[TAXNJ]

Does this

Here is my involvement: I have to do a Schedule J and the amount used up by the NOL is different if there actually is a mysterious adjustment to income.

Does this help? Also, it gives more references that may apply to your scenario

http://www.agecon.purdue.edu/news/financial/farm_crisis.pdf

[Gretel]

Thanks, it's a nice summary and reminder. I do not have problems of how to do the calculations or what I need to do. I am just totally puzzled by having a line filled in for the used up portion of the NOL that does not have any reference to the respective line on the tax return. Since this was done for two different years it might be unlikely that it was just overridden.

[TAXNJ]

Oh

Thanks, it's a nice summary and reminder. I do not have problems of how to do the calculations or what I need to do. I am just totally puzzled by having a line filled in for the used up portion of the NOL that does not have any reference to the respective line on the tax return. Since this was done for two different years it might be unlikely that it was just overridden.

Think you are saying a new client for you and prior years prepared by another firm.

Don't know if this would help, but have you tried to redo the prior years returns to see if you arrive at the same results?

Hopefully it might provide your answer. It may be some work but if an override was done maybe it can be found. There might a legit reason for it (maybe your client knows or can find out).

[taxea]

look at the NOL worksheet for each year that created an NOL and the carryforward worksheets. This is how I keep track of years and usage.