Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 04-18-2013, 03:58 PM
Junior Member
 
Join Date: Apr 2013
Posts: 2
Net Operating Loss, (NOL) Help

We have an NOL for 2012 due to a small business we started. I know you have to complete a 1045, using a 1045 Schedule A form for calculations. Are these doable by someone with some basic knowledge or is it best left to a professional?

Reason I'm asking is it seems none of our local tax preparers have much experience with NOL's here where I live. Everyone I've talked to has said pretty much "oh, we've done 1 or 2", or "it's been a couple years, but yes we can do them". That's just not cutting it for me, lol. I have a lot at stake with the losses our company took.

Any advice would be greatly appreciated.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 04-18-2013, 09:20 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,230
“We have an NOL for 2012 due to a small business we started. I know you have to complete a 1045, using a 1045 Schedule A form for calculations. Are these doable by someone with some basic knowledge or is it best left to a professional?”================>I guess in general, it is best left to a tax pro as you can see( I guess it is hard to figure out yur NOL) Preparing Form 1045 to apply a tentative carry-back loss is ridiculously complicated for most people. Even seasoned tax prepares have difficulties preparing this form. So, as long as you have a complex tax return that requires forms behind the basic 1040 form, you shouldn't attempt to prepare your taxes without the help of a professional unless you're familiar with the process. Instead of doing the taxes on your own, you need to consult with the tax pro. As long as you carry back your NOL to 2010, you can use either Form 1045 or Form 1040X. You can get your refund faster by using Form 1045, but you have a shorter time to file it. You can use Form 1045 to apply an NOL to all carryback years, 2010 and 2011, If you use Form 1040X, you must use a separate Form 1040X for each carryback year to which you apply the NOL. If the IRS refunds or credits an amount to you from Form 1045 and later determines that the refund or credit is too much, the IRS may assess and collect the excess immediately.Generally, you must file Form 1045 on or after the date you file your tax return for the NOL year,2012, but not later than one year after the NOL year. For example, if you are a calendar year TP with a carryback from 2012 to 2010, you must file Form 1045 on or after the date you file your tax return for 2012, but no later than December 31, 2013.You need to attach a computation of your NOL using Sch A of Form 1045 and, if it applies, your NOL carryover using Sch B of Form 1045. To refigure your total tax liability for a carryback year,2010, first you need to refigure your AGI for that year. Certain deductions that you're allowed to claim on Form 1040 are not allowed in figuring a net operating loss. For example, assume you have a nonbusiness capital loss of $1K. Also assume Line line 41 of Form 1040 shows a negative balance of $5K which takes into account the $1K capital loss.To compute your NOL you would complete Sch A of Form 1045. On Line 1 of Sch A, Form 1045, you would enter the $5K negative amount from Line 41, Form 1040.Then, Sch A, Form 1045 will have you add back the $1K capital loss to the negative $5K. The nonbusiness capital loss may not be used to increase your NOL so it is disallowed and excluded from the $5K negative amount that appears on Line 41 of Form 1040.By adding back the $1K capital loss to the negative $5K reported on line 41 of Form 1040, you would end up with a negative amount of $4K (-$5K plus $1K.)You then complete the rest of Sch A, Form 1045, taking into account other items that may apply to your situation. The result will be the amount of your net operating loss.


“Reason I'm asking is it seems none of our local tax preparers have much experience with NOL's here where I live. Everyone I've talked to has said pretty much "oh, we've done 1 or 2", or "it's been a couple years, but yes we can do them". That's just not cutting it for me, lol. I have a lot at stake with the losses our company took.”=========You may contact a CPA/EA in your local area for your fe>d/state returns and for more accurate info in detail.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 04-22-2013, 04:14 PM
Junior Member
 
Join Date: Apr 2013
Posts: 2
Thank you, I appreciate your response. I think I found someone local that sounds like they actually know more than a little about how to do them, lol.

Thanks again for your help



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Sale of partnership interest at a loss: Can I claim this loss on my tax return? jcp1376 Income 1 10-07-2011 04:14 AM
Condominium Deposit Loss due to Developer Fraud - How to treat the loss on taxes? Betico Itemized Deductions 0 09-08-2010 02:05 PM
What is a Private Operating Foundation? TaxGuru Non-Profit Organisation 0 05-03-2010 08:44 AM
New Law Extends Net Operating Loss Carryback for Small Businesses Samatg Tax News 0 03-17-2009 03:16 PM
Impact of net operating losses carryover when I convert to a S Corporation? Leah S-Corporation 1 01-29-2007 10:52 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning