NOL carry forward

[Questionguy101]

Suppose a taxpayer has NOLs in all the last three years:

2003 1,000
2004 4,000
2005 2,000

Suppose he has elected to carry forward all these NOLs. He will enter 7,000 as a negative number on his 2006 Form 1040 line 21. Is it correct?

[oceanlovin'ea]

Separately

You have to figure each year separately and use the oldest one first. in The Tax Book under tab 8 page 16 tells you how to figure the NOL carryforward.

But you can't lump them together.

Linda F

[Questionguy101]

You have to figure each year separately and use the oldest one first. in The Tax Book under tab 8 page 16 tells you how to figure the NOL carryforward.

But you can't lump them together.

Linda F

Thank you for your reply. So what would you put on the 2006 Form 1040 line 21 based on my example?

[S T]

I think

If you have 2003 tax return that should provide you with the NOL carryforward to 2004,

Then if you have 2004 tax return that would provide you with the carryforward to 2005,

Then if you have 2005 tax return that would provide you with the carryforward to 2006,

Etc.

Some of the priors could be used up in 2004, 2005, 2006. So you will have to calculate each year to see what can be carried forward.

You will need all of the prior year returns, and as Linda states it is not cumalitive.

Sandy

[Questionguy101]

If you have 2003 tax return that should provide you with the NOL carryforward to 2004,

Then if you have 2004 tax return that would provide you with the carryforward to 2005,

Then if you have 2005 tax return that would provide you with the carryforward to 2006,

Etc.

Some of the priors could be used up in 2004, 2005, 2006. So you will have to calculate each year to see what can be carried forward.

You will need all of the prior year returns, and as Linda states it is not cumalitive.

Sandy

Is there a simple to use worksheet on the net which can be used to calculate the NOL forward. I know there is one in the taxbook but sorry I do not have the taxbook now. I plan to order one soon but I need to figure out how to do the NOL in a hurry. Thanks.

[S T]

if you want to provide me your email

With your email I can forward a worksheet for NOL not from the TaxBook.

Maybe it will help

Maybe consider subscribing and ordering the TaxBook for 2007. There is an abundance of information and resources.

Sandy

[Bees Knees]

Form 1045, Schedule B (page 3 and 4) is a good worksheet to figure the NOL carryforward each year. You don't have to file the 1045 to use the worksheet. Simply use page 3 and 4 (and the ones found in the 1045 instructions) as your supporting worksheet when figuring how much to carry over from year to year. Every commercial publication worksheet out there is based on Schedule B of Form 1045.



See http://www.irs.gov/pub/irs-pdf/f1045.pdf