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October 21, 2022
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NOL Incorrectly Split when Converting from MFJ to MFS

Related products:Lacerte
  • October 21, 2022
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QBI NOL's that had been proforma'd into a jointly filed individual return are incorrectly handled when the return is split into two MFS returns. The program appears to not distinguish the source of the loss (i.e., to taxpayer or spouse) even though in this instance the Sch. C that was generating the loss was clearly marked as belonging to the taxpayer and their spouse in the General Information portion of Sc. 16. When the return is split it incorrectly gives each spouse 100% of the NOL. 

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