Hi David,

To enter a Net Operating Loss (NOL) for an 1120 corporate return in UltraTax CS 2025, follow these steps:

1. Navigate to the NOL Entry Screen

• Open the 1120 return in UltraTax CS.
• Go to the Carryovers folder, then select the NOL window.

2. Enter Prior-Year NOL Carryovers

• In the Income (Loss) column, enter the taxable income or net operating loss for each prior year.
  • NOLs should be entered as negative numbers.
• Use the Adjustments to NOL column for adjustments (e.g., discharge of indebtedness, charitable contributions).
• NOL Utilized column: Enter the amount of prior-year NOL used in earlier years.

 Tip: If only the remaining carryforward is available, enter adjusted NOL after prior-year usage.

3. Current-Year NOL

• The current year’s loss will flow automatically from Form 1120 calculation.
• If the corporation has an NOL this year, UltraTax stores it for future carryforward (subject to 80% limitation).

4. AMT NOL

• If needed, enter AMT NOL separately in Carryovers > AMT Carryover details, because AMT amounts do NOT default to regular NOL values.

5. Review on Form 1120

• UltraTax will apply the available NOL on Line 29a – Net operating loss deduction of Form 1120.
• Check the Carryover Worksheet for remaining amounts, adjustments, and 80% limitation calculations.

6. Elections

• If you want to waive a carryback, check the appropriate box in Other Info or Elections screens. Election is irrevocable once made.
• Default IRS rule for 2025: No general carryback allowed; NOL carryforward only, up to 80% of taxable income.