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Category: Business Tax Questions

How To Input A Prior Year Loss Carryover On Form 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
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.


NOTE: This is a guide on entering losses into the TaxSlayer Pro program.  This is not intended as tax advice.