BulldogTom Posted May 24, 2007 Report Share Posted May 24, 2007 I appologize for not having done the research yet, but I thought I would ask here first since I won't get a chance to look it up for a few days. Client has an NOL in 2005. I carried back the whole thing to 2003. All good, no issues. Client has already spent the check. Client has an NOL again in 2006. I carried most of it back to 2004. 9K left. Since 2005 was also an NOL, what do I show on the 1045 for that year? Do I leave the 2005 numbers as originally filed, and carry the amount forward? Or do I leave that column blank, and carry forward (I think that will make the IRS computers go tilt)? Any help would be appreciated. I have put this on the shelf since the end of tax season and need to actually get it done sometime this summer. But I have had more fun building a redwood deck and installing a hot tub in my back yard. Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
Maribeth Posted May 24, 2007 Report Share Posted May 24, 2007 Tom, I just went to an NOL seminar yesterday so i hope that I can help you with your question. The instructor said that the IRS now wants us to figure the intervening years calculation and place just the amount of the NOL that will be used in that specific year on the 1045. So in your second year, which already was a loss year, none of the 2006 NOl will be used. So I would make both columns the same to show that none of the carryback was used in that year. I hope that I answered the question that you asked! Maribeth Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted May 24, 2007 Report Share Posted May 24, 2007 Tom, if you use the NOL carry-forward worksheet, it should show the new NOL added and the remainder of the old NOL carried forward, and combine them, with none of it used in 05. I always attach that worksheet as a 'supporting document' with the 1045. On the 1045 itself, yes, I show the same amount in both columns. Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted May 25, 2007 Report Share Posted May 25, 2007 Attaching the worksheet to the 1045 saves a lot of agravation because I have found that the IRS employees who review them, let's say, are not quite as knowledgeable as you would want them to be. taxbilly Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted May 25, 2007 Author Report Share Posted May 25, 2007 Tom, I just went to an NOL seminar yesterday so i hope that I can help you with your question. The instructor said that the IRS now wants us to figure the intervening years calculation and place just the amount of the NOL that will be used in that specific year on the 1045. So in your second year, which already was a loss year, none of the 2006 NOl will be used. So I would make both columns the same to show that none of the carryback was used in that year. I hope that I answered the question that you asked! Maribeth Thank you Maribeth. I think you answered my question. But please allow me to understand what I thought you meant for me to hear from what you said? So I will show the amount of the NOL that can be used on the column for the second preceeding year (2004), and in the next column (first preceeding year) I will show the originally filed 2005, with no adjustments? Then I will attach (per KC's post below) the carryforward worksheet? Am I on target? Thanks again for your help. Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted May 25, 2007 Author Report Share Posted May 25, 2007 Tom, if you use the NOL carry-forward worksheet, it should show the new NOL added and the remainder of the old NOL carried forward, and combine them, with none of it used in 05. I always attach that worksheet as a 'supporting document' with the 1045. On the 1045 itself, yes, I show the same amount in both columns. But there was no carry forward on the 2005 NOL. I took the entire amount back to 2003 and carried nothing forward. So there is no worksheet to move forward into 2004. Now I am carrying 2006 back to 2004. That part is easy. My question is what to show for the 2005 year on the 1045. I think you are saying to show the 2005 amounts on the 1045 and adjust nothing. Then I will carry the 9K forward to 2007, and I will use the NOL Carry Forward worksheet next year? Am I understanding you correctly? Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
Maribeth Posted May 26, 2007 Report Share Posted May 26, 2007 Tom, Yes, if none of the NOL will be used in 2005 because 2005 is already a loss year, then on the 1045 there will no changes in either column. You are not using any of the NOL in 2005. Maribeth Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted May 28, 2007 Author Report Share Posted May 28, 2007 Thank you Maribeth. Your help is appreciated. Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
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