User's Manual - Drake Software

Net Operating Losses
Drake Software User’s Manual
Figure 5-56: NOL carryback field on screen 3
An amount entered here flows to the “Other income” line of Form 1040. Click the
LOSS link as needed to access the LOSS screen.
Carryforwards from Prior Years
Screen code:
LOSS
Use the LOSS screen to enter NOL carryforward amounts from prior years. Enter
amounts for each year using the Amount available from carryforward, Used prior
to 2012, and Used in 2012 columns on this screen.
NOTES
Never add a LOSS screen for a current-year NOL. The program carries
forward any current-year NOL and displays the carryforward on the
WK_CARRY worksheet. The results of your data entry are reflected on
the WK_NOL worksheet.
To have the program calculate whether there is a NOL for the current
year, go to the NOL screen and select Calculate 1045 page 2 ONLY.
(See “NOL Carryovers on Form 1045,” following.)
NOL Carryovers on Form 1045
Screen code: NOL
Form 1045, Application for Tentative Refund, includes Schedule A (NOL) and Schedule
B (NOL Carryover). Use the NOL screen, accessible from the Other Forms tab,
to enter amounts for these schedules into Drake.
NOTES
The Schedule A fields are override fields. Entries override system calculations
for Schedule A.
To calculate only page 2 of Form 1045, select Calculate 1045 page 2
ONLY at the top of the NOL screen.
NOL
Carryforward
Only
Figuring
AMT NOL
To indicate that the taxpayer elects to carry a NOL forward and not back, go to the
NOL screen and select Election to carry forward ONLY. When the return is generated,
it includes an ELECTIONS statement, stating that the taxpayer is electing under
Section 172(b)(3) to relinquish the entire carryback period.
Use the right-hand column of the NOL screen to enter data for figuring Alternative
Minimum Tax NOL. When the return is generated, the AMT_NOL worksheet shows
the current year AMT NOL.
174 Tax Year 2012