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Category: Business Tax Questions

How Do I Enter A Prior Year Loss Carryover On An 1120?

If the carryover is from a Net Operating Loss, from the Main Menu of the Tax Return (Form 1120) select:

  • Deductions
  • Net Operating Loss (Allowable Net Operating Loss is limited to the taxable income on the 1120.  ONLY enter the portion of the Net Operating Loss that can be used to offset the Corporation’s current taxable income.)

If the carryover is a Capital Loss, from the Main Menu of the Tax Return (Form 1120) select:

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

NOTE: The loss carryover will only offset the gain.  If the return was done in the prior year the amount will carry over to the current year.