Where to Enter a Prior Year Loss Carryover On Form 1120

Net Operating Loss Carryover

If the prior year's return with the NOL was prepared in Tax Processors Plus Desktop, when starting the following year's return you will be queried about pulling in the NOL to Schedule K.

Otherwise, to enter an NOL carryover in Form 1120 in Tax Processors Plus Desktop, from the Main Menu of the tax return (Form 1120) select:

• Schedule K - Other Information
• Available NOL Carryover From Prior Years
• Adjustments to NOL carryover (+/-) - If there is no carryover from the prior tax year, enter the amount of the NOL carryover as a negative number. If the amount carried over needs adjusting, enter the amount of the adjustment plus or minus as needed.

The amount entered will flow to Form 1120 line 29a and will offset income for the current year. Any unused portion will carry forward to next year's return.

Capital Loss Carryover

To enter a capital loss carryover in Form 1120 in Tax Processors Plus Desktop, from the Main Menu of the tax return (Form 1120) select:

• Income
• Capital Gain Net Income (Schedule D)
• Other Short Term Data
• Unused Capital Loss Carryover

The loss carryover will only offset the capital gain. If the prior year's return with the capital loss carryover was prepared in Tax Processors Plus Desktop, when starting the following year's return you will be queried about pulling in the carryover to Schedule D.

Note: This is a guide on entering loss carryovers into the Tax Processors Plus Desktop program. This is not intended as tax advice.