User's Manual - Drake Software

Drake Software User’s Manual
Net Operating Losses
Table 5-18: Screen 8829 Multi-form Codes for Form 2106
If the 2106 is for ...
Enter this
code:
Spouse (and the taxpayer has two 2106 forms) 3
Depreciation of Home
Generally, home depreciation data should be entered under Part III of the 8829 screen.
If the home was placed into service during the current tax year, however, leave Part III
blank, start a 4562 screen for the home, and enter the data shown in Table 5-19:
Table 5-19: Screen 4562 Fields to Complete for First-Year 8829
Screen
8829 Information or Text to be Entered
For Select 8829.
Multi-form code Enter the instance of Form 8829 to be associated with this 4562
screen. (See “Associating One Screen with Another” on page 73.)
Description
Date Acquired
Cost/Basis
Enter a description of the asset.
Enter the date the home was placed in service.
Enter the smaller amount — the cost/basis or the fair market value.
(This amount would normally be entered in Part III of the 8829
screen.) Do not include the cost of the land.
Business % Use Leave this field blank; default is 100%.
Method
(Federal column)
Life
(Federal column)
Land cost
Main Home for 8829
Select SL - Straight Line.
Enter the number 39.
Enter the cost of the land only. This amount should not be included
in Cost/Basis above. (This amount would normally be entered in
Part III of the 8829 screen.)
Select this box if the asset was the main home. This information is
posted to the bottom of Form 8829 when the return is generated.
Net Operating Losses
This section explains how to enter carrybacks and carryforwards of net operating
losses (NOLs) in Drake.
Carrybacks from Future Years
Screen code: 3
Enter NOL carryback amounts from future years on screen 3 in the NOL field
(Figure 5-56 on page 174). This field can also be used to amend the current-year
amount or to adjust carryback amounts calculated from the LOSS screen.
Tax Year 2012 173