In 2017, Lisa calculated a ($46,473) NOL on her Form 1045, Schedule A. Lisa want
ID: 2432642 • Letter: I
Question
In 2017, Lisa calculated a ($46,473) NOL on her Form 1045, Schedule A. Lisa wants to carryback her 2017 NOL to 2015. In 2015, Lisa filed single, had no dependents, took the standard deduction, and her AGI reported on her Form 1040, line 37, was $63,196. Lisa's 2015 income tax was $9,013 and her 2015 self-employment tax was $9,608.Using Form 1045, pages 1 and 2, carryback Lisa's 2017 NOL to 2015 and calculate her refund. $8,360. $8,365. $8,370. $8,375. In 2017, Lisa calculated a ($46,473) NOL on her Form 1045, Schedule A. Lisa wants to carryback her 2017 NOL to 2015. In 2015, Lisa filed single, had no dependents, took the standard deduction, and her AGI reported on her Form 1040, line 37, was $63,196. Lisa's 2015 income tax was $9,013 and her 2015 self-employment tax was $9,608.
Using Form 1045, pages 1 and 2, carryback Lisa's 2017 NOL to 2015 and calculate her refund.
Explanation / Answer
In 2017, NOL is $46,473. It need to be transferred two years back to 2015 as it cannot be carried back 1 year .
If you carried the NOL to an earlier year, your NOL deduction is the carried over NOL minus the NOL amount you used in the earlier year or years.
In 2015 AGI reported in her form 1040 as $63196.
Since nothing is mentioned about the usage of the NOl, we will carry forward the whole amount to 2015. Include the NOL deduction with other deductions not subject to the 2% limit (line 15a)
Refund amonut = 63196 - 46473 -9013 + ( 9608-9013) = $8302