Question 69 of 75. If the taxpayer carries forward a NOL to a tax year after the

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Question 69 of 75. If the taxpayer carries forward a NOL to a tax year after the NOL year: O The NOL deduction is listed as a negative figure on the form from which the loss derived. The NOL deduction is listed as a negative figure on the Other Income line of Form 1040 or Form 1040 o The NOL deduction is listed as a negative figure on Schedule A not subject to the 2% limitation. O The NOL deduction is listed as a negative figure on Schedule D. Mark for follow up " Back Save /Return Later Summary Next

Explanation / Answer

Q. If the taxpayer carries forward a NOL to a tax year after the NOL year:
Answer: The NOL deduction is listed as a negative figure on the other income line of form 1040 or form 1040NR

NOL Shows on Form 1040, Line 21: the full amount of NOL carryover available will show on line 21 per IRS guidelines.

Publication 536:

If you carry forward your NOL to a tax year after the NOL year, list your NOL deduction as a negative figure on the “Other income” line of Form 1040 or Form 1040NR (line 21 for 2016).

1040 Instructions:

Include on line 21 any NOL deduction from an earlier year. Subtract it from any income on line 21 and enter the result. If the result is less than zero, enter it in parentheses. On the dotted line next to line 21, enter “NOL” and show the amount of the deduction in parentheses.

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