100% at-risk and passive rental - other taxable income after deductions and exemptions was zero. Sch E was calculated incorrectly and when amended generated a $29k NOL. How do I amend the return to create an NOL that should be carried forward IN FULL?

Since a NOL can be used to directly reduce the amount of taxable income ( I mean as long as you carry sufficient taxable income to be reduced), it can be considered a valuable asset. You may deduct NOL in the current year, or save a portion of the losses and carry forward the amount to other years. The IRS generally requires NOL to be carried back before they can be carried forward, but this often creates a problem for taxpayers because the years a loss is carried back must be amended to apply the loss before any remaining portions may be carried forward. However, you may waive the carry back rules. Then you need to attach a statement to the tax return that the NOL is generated. You may only do this in the year you generate the initial loss. Your statement must say you are waiving the carry back rule "pursuant to section 301.9100-2." If you do not attach the statement to your original return, you may amend your return and attach the statement within six months of the original return's due date. The first year you carry forward a loss, the carry forward amount is the entire portion. In future years, your NOL is determined by subtracting the amount of loss you have used to reduce taxable income to zero in prior years. Add the amounts the losses used in prior years and subtract from your original NOL. The result is the amount of loss available.
You can claim your NOL for the year. You may claim up to the amount of your taxable income, but not more than your taxable income. You need to report the amount as a negative figure on Form 1040, line 21, Other Income. Write "NOL" on the line to the right of box 21.






So basically, after preparing your Form 1040 tax return, if the amount on line 41 is a negative number, you may use Form 1045/ 1040X to determine the allowable NOL;you need to file your amended return by amending Sch E of 1040 and 1040 to carry it back; a 1040X is an amended 1040 tax return. Since you filed an incorrect 1040 tax form due to incorrect Sch E of 1040(I mean your NOL was understated by $29K on your 2012 1040), the 1040X is used to amend the original tax return. After you file the 1040X it becomes your new 1040.
As you've determined the amount of any NOL in your business, you need to decide whether to carry the loss backwards (and claim a retroactive refund), or forward. NOL may be carried back for two years (or for three years, in the case of a casualty loss) before the year of the loss, which is called the NOL year. The loss is used to offset the taxable income of those previous years, for the earliest year first. Any unused portion of the loss may be carried forward for up to 20 years after the NOL year. To "carry a loss back," you may file a Form 1045 within one year of the end of the NOL year, or you can file an amended tax return for the year in question within three years of the NOL year. For example, assume that If your NOL year was 2012 and you filed your tax return on April 15, 2013, you can file Form 1045 any time on or after April 15 of 2013 but before January 1, 2014, to claim a refund for 2010. Or, you can file a 1040X for 2012 any time before April 15 of 2017. If you like, you can elect to forgo the carryback period, instead choosing to deduct the net operating loss only over the next 20 years in the future. If so, you MUST attach a statement to your tax return for the NOL year,2012, or to an amended return for that year filed within six months of its due date excluding extensions.
NOTE: The IRS uses different loss rules to limit the types and amount of losses deducted for rental properties. The loss is deducted against gross income and may produce a NOL. Using carry-back rules, the loss may be carried backward or forward, depending upon the offset of income and tax deductions the taxpayer claims. Losses that are considered passive may require the taxpayer to defer or suspend the losses for a given year. Unless the taxpayer has net income for a tax year from the rental activities, she may not deduct the loss.

Thank-you. The NOL was generated in 2009 and I'm amending 2009 but I don't want to use any of it in the year it was created because taxable income is already zero. Can I carry the full amount of the NOL forward and if so how do I do it?

Then, it is too late to elect to forgo the NOL; as your NOL year was 2009 and you filed your tax return on April 15, 2010, you could file Form 1045 any time on or after April 15 of 2010 but before January 1, 2011, to claim a refund for 2010. You can file a 1040X for 2009 any time before April 15 of 2013.The Form 1040X filing period is governed by section 6511. A claim for credit or refund must generally be “filed by the taxpayer within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever of such periods expires later” (section 6511(a)). However, this period is modified in the case of a claim for credit or refund attributable to an NOL carryback; the limitation period ends three years after the due date for filing the return (including extensions) for the tax year of the NOL that results in the carryback. In general, tax must be assessed within three years of the later of (1) the date on which the return is filed or (2) the un-extended due date of the return (Sec. 6501(a)). There are several exceptions set forth in Sec. 6501 that extend the general three-year limitation period. One such exception is Sec. 6501(h), which provides an expansion of the general limitation period when a taxpayer carries back an NOL to the tax year in question from a subsequent tax year;i guess you can contact the IRS/ a CPA/an IRS EA in your local area for your fed/state returns or for more accurate info in detail