ProConnect Tax will generate other income, with the description ELA, when a negative amount is reported on Form 461, line 16, as excess business loss. Although the amount is a loss, Form 461 instructions indicate the amount should be reported as a positive number on the "other income" line of your tax return with a description of "ELA."
The "other income" lines which could report this amount include
- Form 1040, Schedule 1, line 21
- Form 1041, line 8
- Form 1041-QFT, Part II, line 4
- Form 1041-N, Part II, line 4, and
- Form 990-T, Part I, line 12 (applicable for trusts only).
