NOL Carryforward for Individuals

Forum|Forum|1 year ago
October 8, 2024
1 reply
5 views

Situation: I have a client that ran a trucking business for a number of years and in 2022 exited the business due to the economy. Once calculated, he has a $19k NOL Carryforward. During the time of trucking, he was single. In 2023 he got married and now will be filing jointly. In 2023 he worked only W-2 jobs.

According to 536, he can only claim 80% of the excess of taxable income computed without regards to the NOL. What does the publication mean by "excess"? I also understand that this computation can only be done on his income. not joint.
I just need help with this computation. Also, what is appropriate to attach as a statement that shows the facts of this NOL?

Thank you so very much, in advance, for anyone's help.

This topic has been closed for replies.

T

Terry53029

Intuit Community Champion

An NOL is the excess of business losses over business income reduced by the excess, if any, of nonbusiness income over nonbusiness deductions. By filling out worksheet 1 in pub 536 that will give you your NOL if any. Attach a computation of your NOL using Form 1045, Schedule A, and, if it applies, your NOL carryover using Form 1045, Schedule B. Don't attach a written statement as no one will read it anyway

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