Sooo.....on the new NOL 80% deal

[Just-Lisa-Now-]

How do we keep track of the NOLS prior to 2018 vs those 2018 and forward?  And do we get to use up the prior ones that reduce 100% of taxable income first?

I'm sure PS isn't going to be much help in keeping track of this, is it?

I'm really not that well versed in NOL's, barely a handful of my clients have them, so please don't tell me to send them to another preparer that knows what they're doing...I gotta learn sometime!

[TaxMonkey · Accepted solution]

I just made a spreadsheet to track them, and yes NOLs are used oldest first.  I have been sort of familiar with tracking NOLS, because the California NOL rules have been different from Federal and different from year to year for a while.

[Just-Lisa-Now-]

thank you!

[alexroytenbergcp]

Also, the NOL Worksheet in ProSeries has the different carryover years and trackings.  

[Just-Lisa-Now-]

right but I doubt its going to track the old NOLs vs the new NOLs

[msmith7305]

Dragging this issue up again since it is important for 2021 returns.

As far as I can see PS does not have anything set up to help us with the application of NOLs that are for multiple years. Heck, as far as that goes, I see nothing in the program whatsoever that deals with the 80% taxable income limitation for post 2017 NOL carryovers.

On the Carryover Worksheet the NOL Carryover that goes to Schedule 1 Line 8a is just the grand total of all NOLs carried over from prior years and applies 100% to the tax return no matter the year of the NOL and ignores any 80% limit that might apply.

How is everyone handling this?

[msmith7305]

Bumping this up. I have one now that is subject to the 80% limit and need to figure out how to have PS work it in correctly.

[cpaJA8]

Same!  Bump

[david3]

Since we aren't getting any guidance on how to enter the 80% NOL limitation, how have those of you who have this issue in 2021 entering the correct information?

What forms and line numbers are you changing to report the 2021 NOL correctly? I have a 2020 NOL carryforward and a 2021 NOL. 

Other than overriding and creating e-file problems, what is the best way to report this in PS?

Thanks.

[The_AntiTax_Man]

@Just-Lisa-Now- @msmith7305 @david3 @cpaJA8 @alexroytenbergcp   

Have any of you received any new info from Intuit on this 2019, 2020, 2021 NOL C/F 80% of taxable income NOL deduction limitation issue?  

Are you entering the NOL C/F deduction limitation adjustment onto the PS "NOL Explanation Statement" tax return attachment to get the correct amount of NOL C/F deduction reported onto the current year tax return?

Then the PS program will C/F an incorrect NOL C/F amount to the succeeding year which will then need to be adjusted in the succeeding years' PS program?

Asking for everyone.....

[TiredFarmer]

Does anyone have a better way than keeping your own spreadsheet and changing the total on the carryover worksheet if needed?