NOL-USE 1045 OR 1040X

[michaelmars]

The instuctions for 1040X say i can use either form. Anyone have a reason for one over another. the 2009 NOL is from k-1 income and not from a disaster or anyother preferenced item.

I Think i need a 1040X because for foreign tax credits, if so do i have to use the new or can i use the old form [which ATX loads and calculates] for 2007 and 2008?

[Gail in Virginia]

The 1045 is supposed to result in a faster refund, but it can only be used if it is done within one year of the NOL. So for a 2009 NOL you could use the 1045 and just attach the appropriate schedules to support your changes. The advantage is that you can amend more than one year at a time with a single 1045. However, to get the right numbers to put on the 1045 I generally wind up doing amended returns for each year that I am changing just to make sure I am correcting all the numbers I need to correct.

As far as I know you can still use the 1040X that comes up within the 2007 and 2008 programs, even though it has been replaced in 2009.

[michaelmars]

Thanks Gail-its stupid but you can't use the 1045 if there is a foreign tax credit involved and yes according to a post from KC you can use the old form that ATX populates for 2007/2008.

[jainen]

>>2009 NOL is from k-1 income<<

I presume you mean K-1 "LOSS." I don't really mean so in irony. This kind of bare-bones question always makes me uncomfortable. Supposedly you have worked through one of the more difficult calculations in tax theory, handling any passive or at-risk limitations, timing issues and all. Then you got stuck on which FORM to use? Your tax guide for an NOL is the INSTRUCTIONS?

Well, as Gail explained, the choice may depend on factors other than the NOL itself. According to your profile your firm specializes in Real Estate using super-sophisticated software, so surely they can provide more focused advice than here.

[michaelmars]

"Well, as Gail explained, the choice may depend on factors other than the NOL itself. According to your profile your firm specializes in Real Estate using super-sophisticated software, so surely they can provide more focused advice than here. "

WELL EXCUSE ME FOR ASKING A QUESTION THAT DOESN'T INVOLVE REAL ESTATE AND AREN'T YOU ONE OF THE PEOPLE THAT ALWAYS SAYS DON'T LET YOUR SOFTWARE MAKE YOUR DECISIONS FOR YOU.

[jainen]

>>DON'T LET YOUR SOFTWARE MAKE YOUR DECISIONS<<

In my opinion there are better tools for planning decisions, but when it comes to filling out forms, software is hard to beat! I only referred to the real estate specialists because those guys are likely to be very knowledgeable about how to handle an NOL.