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Calculation of ELA income

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Level 15

IRS form 461

Part III—Limitation on Losses Use Part III to apply the threshold limitation and figure the excess business loss. See Definitions. 

Line 14 Add lines 9 and 13. The resulting figure can be a positive or negative number. 

Line 16 If the resulting figure on this line is a negative amount, then it is your excess business loss. See Definitions. 

Although it is a loss, you will report the excess business loss adjustment as a positive number on the “Other Income” line on your tax return and enter “ELA” on the dotted line. The “Other Income” lines are located on the following lines based on the type of tax return. 

• Schedule 1 (Form 1040), line 21. 

• Form 1040NR, line 21. 

• Form 1041, line 8. • Form 1041-QFT, Part II, line 4. 

• Form 1041-N, Part II, line 4. 

• Form 990-T, Part I, line 12 (applicable to trusts only). 


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Level 12
Do you have a question?  If so, please ask it.  Also, you could clarify what "ELA income" means.
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Level 15

IRS form 461

Part III—Limitation on Losses Use Part III to apply the threshold limitation and figure the excess business loss. See Definitions. 

Line 14 Add lines 9 and 13. The resulting figure can be a positive or negative number. 

Line 16 If the resulting figure on this line is a negative amount, then it is your excess business loss. See Definitions. 

Although it is a loss, you will report the excess business loss adjustment as a positive number on the “Other Income” line on your tax return and enter “ELA” on the dotted line. The “Other Income” lines are located on the following lines based on the type of tax return. 

• Schedule 1 (Form 1040), line 21. 

• Form 1040NR, line 21. 

• Form 1041, line 8. • Form 1041-QFT, Part II, line 4. 

• Form 1041-N, Part II, line 4. 

• Form 990-T, Part I, line 12 (applicable to trusts only). 


ex-AllStar

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Level 15
Great find. I had no idea what ELA meant.  I'll probably see it for real in a large after April 15 return I have.

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@George4Tacks  -  I owe you for this....I'm working up the extension for my biggest client and this came up.  You saved me from researching the presentation.
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Level 15
You buy lunch!

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It's a date !
Former Chump... umm.... AllStar.
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