Vityaba Posted April 17, 2014 Report Posted April 17, 2014 I am looking for some assistance with NOL calculation. Please see attached screenshot of my NOL info. I am confused about line 24. ATX puts there available NOL from previous years. It is a positive number as instructions on line 24 say. Line 25 comes up to 0. If there was no previous years NOL this client would have actually had $6286 NOL this year, did not he? Why does old NOL affects current NOL calculation? Quote
David1980 Posted April 17, 2014 Report Posted April 17, 2014 No to the current year NOL question. In calculating a NOL you are not permitted a deduction for personal exemptions, capital losses in excess of capital gains, section 1202 exclusion, nonbusiness deductions in excess of non-business income, the net operating loss deduction, or dpad. So starting with line 41 of the 1040 you have to add back the nonbusiness deductions in excess of non-business income and that -5,914 becomes +6,286. No 2013 NOL. Looks like they'll still have a lot of their prior NOL left though. 3 Quote
BulldogTom Posted April 17, 2014 Report Posted April 17, 2014 Did you put the prior year NOL on Line 21 of the 1040? Agree with what David says. After the add backs, there is no NOL for this year to add to the prior. Tom Hollister, CA 1 Quote
Vityaba Posted April 18, 2014 Author Report Posted April 18, 2014 I got it Thank you for your inputs Quote
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