Prior Year Net Operating Loss (NOL)

Prior Year Net Operating Loss (NOL)

Depending on the source of the prior year loss, it may be entered in different menus in the tax program:

Entering a prior year net operating loss on Form 1040

From the Main Menu of the Tax Return (Form 1040 / Tax Return Summary) select: Federal Section > Income > Less Common Income > Net Operating Loss (NOL) from Prior Year(s)

 Entering a prior year unallowed loss on Schedule C

From the Main Menu of the Tax Return (Form 1040 / Tax Return Summary) select: Federal Section > Income > Profit or Loss from Business. Create a new Schedule C entry, or select edit next to an existing Schedule C entry. Select Questions About the Operation of Your Business > Enter the prior year unallowed loss in the space provided:


Entering a prior year unallowed loss on Schedule E

From the Main Menu of the Tax Return (Form 1040 / Tax Return Summary) select: Federal Section > Income > Supplemental Income and Loss. Create a new Schedule E entry, or select edit next to an existing Schedule E entry. Select Expenses > Enter the prior year unallowed loss in the space provided:


Entering a prior year unallowed loss on Schedule F

From the Main Menu of the Tax Return (Form 1040 / Tax Return Summary) select: Federal Section > Income > Profit or Loss From Farming. Create a new Schedule F entry, or select edit next to an existing Schedule F entry. Select Basic Information About Your Farm > Enter the prior year unallowed loss in the space provided:



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