Carryback of NOL on Form 1045 - Spidell

Carryback of NOL on Form 1045

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Message Board Carryback of NOL on Form 1045

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    • #259326
      Mike McGowan

      When an NOL is carried back from 2019 to 2014, $1,000 of previously suspended passive activity losses (PAL’s) are allowed due to the decrease in AGI for the carryback year.

      Questions #1:  Does this reduce the PAL carryovers from 2014 to later years?

      Questions #2:  How do you report this decrease in PAL carryovers?  Assuming the NOL was fully absorbed in 2014 and assuming you had previously deducted all of your 2014 PAL carryovers in 2015, would you use the second column year of Form 1045 to report a $1,000 increase in passive activity income or loss and show a tax increase on Form 1045 for 2015?

      Or, must you file amended returns for all subsequent years to report the decrease in PAL carryovers?

    • #259895
      Mike Giangrande


      As to Question #1: Yes.

      As to Question #2: You should be able to make all prior year adjustments resulting from the NOL carryback on Form 1045.

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