How do I enter a net operating loss (NOL) carryover or carryback in a Form 1120 corporate return in ProConnect?
For most taxpayers, NOLs arising in tax years ending after 2020 can only be carried forward. See Net operating losses for more information.
How to enter a NOL carryover:
- Go to the Input Return workspace.
- Select All under Views.
- Select Deductions and then Net Operating Losses.
- Select Regular NOL Deduction and then Net Operating Loss Carryovers.
- Under Net Operating Loss Carryovers, enter all necessary figures into the TAX YEAR ENDED [OVERRIDE], NET OPERATING LOSS, and UTILIZATIONS (ENTER YEAR AND AMOUNT) fields for all carryovers you wish to carry into the current year’s return.
Example: There was a NOL in 2012 of $50,000. In 2013, $20,000 of that NOL was absorbed. In the input screen, in the line for 2012, enter $50,000 in the NET OPERATING LOSS field. Under UTILIZATIONS on the same line for 2012, enter 2013 in the DESCRIPTION field and $20,000 in the AMOUNT field.
How to enter a NOL carryback:
The Net Operating Loss Carrybacks inputs are also based on the year a loss occurred. Enter any necessary figures into the REGULAR or CONSOLIDATED, IF DIFFERENT columns:
- Regular net operating loss: If the corporation sustained a NOL that it’s carrying back and there’s an unabsorbed portion remaining in 2007, enter the NOL in full.
- Utilizations: If the corporation suffered a NOL, and used any portion of the NOL as a deduction before the current year, enter the individual amounts and years you used the corresponding NOL (enter the year in the description field in yyyy or dd/mm/yyyy format). The program subtracts the total of these entries from the entry in the corresponding Regular Net Operating Loss to calculate the NOL available as a deduction.