NOL - Reality Check

[SunTaxMan]

I have had limited experience with NOLs, so would appreciate any insight/comments, etc.

I am dealing with 2007 1040 (yes, 2007, not 2008)

Return shows:

Interest income, $263

Sched. C Loss of ($-21,657)

Schedule F Income of $13,911

Sched. D loss (-$3000)

Total Income ($-10,483.)

LESS:

Self Employed Health Ins., $2,540.

Standard Deduct. $10,700

Exemptions, $20,400

TAXABLE INCOME, -0-

NOL Worksheet, ($-10,023)

On the Form 3621-A, carryback to 2004 return:

Carryback, $10,023

Taxable Income, $-0-

No Itemizing

Exemptions, $12,400

Modified taxable income, $12,400

NOL carryover, ($-2,377)

On the Form 3621-A, carryforward to 2005 return:

Carryforward, $2,377

Taxable Income, $-0-

No Itemizing

Exemptions, $12,800

Modified Taxable Income $12,800

NOL carryover, ($-15,177)

On the form 3621-A, carryforward to 2006 return:

Carryforward, $15,177

Taxable Income, $14,737

No Itemizing

Exemptions, $19,800

Modified taxable income, $34,537

NOL Carryforward to 2008, ($-49,714)

This ($-49,714) doesn't seem reasonable, but "reasonable" isn't always an accurate evaluation. Am I missing something (s)?

Thanks,

[kcjenkins]

No, you have goofed somewhere. Although I did not get the same NOL as you. Did you put the std deduction on Line 6 of the worksheet, and the interest income on line 7?

[TAXBILLY]

A few problems here. An NOL in 2007 can only be carried back two years, not three.

SE health insurance cannot be deducted if there is no net SE income.

taxbilly