- quote -

The taxes deduction seems pretty big: did you accidentally
include federal income tax for the prior year? Otherwise I
haven't a clue.

If you believe your NOL is correct, you still have the
option of filing form 1120X.

--
Thomas E Healy, CPA, PC
1650 38th St., Ste 202W
Boulder, CO 80301
Please send email to: tom[at]tomhealycpa.com, since I block all email at my
newsgroup address.
phone (303) 443-1804
fax (720) 489-3772

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shamber[at]yahoo.com (usfin) wrote:

- quote -

See Section 172(c) and Regulation 1.172-2 for how to
calculate a corporation NOL.

--
Drew Edmundson, CPA (NC)

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I have a C corporation that had a first large loss in a year
that followed a series of profitable years. I filed an 1139
carrying back the loss 2 years and it was sent back rejected
by the IRS. I had claimed a NOL of $81,637 but the IRS said
they calculated the NOL as $36,473. I thought the NOL would
be the total income minus total deductions.

Here are the numbers:

Income:
Gross Receipts: 8960
Interest: 3466
Captial Gain Net Income: 41655
------------------------------
Total income: 54091

Deductions:
Salaries and wages: 45000
Rents: 4000
Taxes and Licenses: 66584
Depreciation: 957
Advertising: 3054
Other deductions: 16133
------------------------------
Total Deductions: 135728

So the total loss for the year was -$81637. Is the IRS
correct with the $36473 which would mean the calculation
isn't straightforward ?

Any worksheets to make the NOL calcuation? I've seen a
publication for individuals to make NOL calculations but
does this apply to C corporations?

Thanks,
Mike

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