Will a Current-year NOL be Carried Forward in UltimateDR?

A current-year NOL always appears in View on: 

• Form 1045, page 3 (1045.PG3)
• Worksheet WKs NOL (WK_NOL in UltimateDR 15 and prior)

To determine whether a current-year NOL will be carried forward to next year, in View mode, review the NOTES page. If NOTE 368 present, the current-year NOL will not be carried forward until you return to data entry and indicate how you want to handle it.

NOTE 368

CURRENT-YEAR NOL PRESENT: A current-year NOL has been calculated on Form 1045, page 3, and you have not carried the NOL back using the rest of Form 1045. Return to screen NOL and indicate whether you will be performing a carryback outside of the software or electing to waive the carryback period and carryforward the current-year NOL.

You must eliminate NOTE 368 before a current-year NOL will be carried forward when you update the return next year. Eliminate the note by either: 

• Completing screens 1045 and NOL to request a tentative refund of the NOL. A current-year NOL must be applied first to prior-year returns, normally three prior years. Completing these screens causes the software to calculate carryback and generate the refund request, making any remainder available for carry-forward, or
• By indicating that either:
• The current-year NOL is being applied to prior years outside the software - that is, you have applied or will apply the NOL without further data entry in the software. The software then assumes the current-year NOL has been consumed by application to prior years and is not available for carryforward. (This assumption is also made whenever NOTE 368 is displayed.)
• Or, the taxpayer is electing to carry the current-year NOL forward only. This selection makes the entire current-year NOL available for carryforward.

These selections are available on the NOL screen:

When these conditions are met, NOTE 368 is eliminated. If you have completed a Form 1045 refund request and there is a remainder, or if you have elected to carry forward only, any available carryforward loss appears on: 

• worksheet WKs CARRY (WK_CARRY in UltimateDR 15 and prior). (The worksheet is displayed only if the Carryover worksheet is enabled on the Setup > Options > Form & Schedule Options tab.) An amount displayed there under "Losses" includes a current-year NOL and any prior-year NOL available for carryover to next year:

• and on next year's LOSS screen after you update a client next year (Last Year Data > Update Clients 20XX to 20YY).