1120 NOL...C Corp had a NOL of $23,400 from 2021.2022 Taxable Income is $24000.Why is only $19200 of the NOL allocated against the Taxable Income and not the $23,400?

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ProSeries Professional

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TaxGuyBillAnswer

I'm not looking at your worksheet, but it is 80% of "taxable income". That math seems perfect to me.

sjrcpa

Level 15

There's an 80% rule.

The more I know the more I don’t know.

C

chapguy19Author

Level 5

The NOL is $23,400 in Column A.

Column B of NOL Wks shows Deduction Allowed in current year of $19200. That's above 82.1% of column A.

What am I missing?

Thanks, Christopher

T

TaxGuyBillAnswer

I'm not looking at your worksheet, but it is 80% of "taxable income". That math seems perfect to me.

Jim-from-Ohio

Intuit Community Champion

I had this exact situatiion where C Corp had pretty large NOL yet still owed tax on 2022 return even though 2022 profit was less than the NOL. seems kind of an odd rule but saw it first hand.

D

DTNY07

Level 6

Pre-2018 NOL you can take 100%. Anything from 2018 and later is the 80% rules that others have mentioned. I forgot that 2018 was the year of the change for a return I was working on.

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