Table 1. Worksheet for NOL. Carryover From 2005 to 2006 (For an NOL. Year Before 2005). Summary: This is an example of the worksheet used to figure the net operating loss carryover from 2005 to 2006. A Note on
the bottom of the
form states:
“If you choose to waive the carryback period, and instead you choose to only carry your 2005 NOL. forward, use Schedule A,
Form 1045 to compute
your 2005 NOL. that will be carried over to 2006. Report your 2005 NOL. from line 25, Schedule A, Form 1045 on the other income
line of Form 1040 or
the line on Form 1041 for deductions NOT subject to the 2% floor in 2006.” The line items to be completed are:
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“NOL. YEAR” field
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Under
“Use Your 2005 Form 1040 (or Form 1041) to Complete This Worksheet:”
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“1. Enter as a positive number your NOL. deduction for the NOL. year entered above from line 21 (Form 1040) or line 15a (Form
1041)”
field
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“2. Enter your taxable income without the NOL. deduction for 2005 (See instructions.)” field
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“3. Enter as a positive number any net capital loss deduction” field
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“4. Enter as a positive number any gain excluded on the sale or exchange of qualified small business stock” field
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“5. Enter the amount of any domestic production activities deduction”field
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“6. Enter any adjustments to your adjusted gross income (see instructions)” field
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“7. Enter any adjustments to your itemized deductions from line 38 or line 42 (see instructions)” field
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“8. Enter your deduction for exemptions from line 42 (Form 1040) or line 20 (Form 1041)” field
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“9. Modified taxable income. Combine lines 2 through 8. Enter the result (but not less than zero)” field
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“10. NOL. carryover to 2006. Subtract line 9 from line 1. Enter the result (but not less than zero) here and on the other income
line of Form
1040 (or the line on Form 1041 for deductions NOT subject to the 2% floor) in 2006” field
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Under
“Adjustments to Itemized Deductions (Individuals Only):”
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“11. Enter your adjusted gross income without the NOL. deduction for the NOL. year entered above or later years. (See instructions.)”
field
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“12. Combine lines 3, 4, 5, and 6 above” field
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“13. Modified adjusted gross income. Combine lines 11 and 12 above” field
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Under
“Adjustment to Medical Expenses:”
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“14. Enter your medical expenses from Schedule A (Form 1040), line 4” field
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“15. Enter your medical expenses from Schedule A (Form 1040), line 1” field
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“16. Multiply line 13 above by 7.5% (.075)” field
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“17. Subtract line 16 from line 15. Enter the result (but not less than zero)” field
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“18. Subtract line 17 from line 14” field
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Under
“Adjustment to Charitable Contributions:”
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“19. Enter your charitable contributions deduction from Schedule A (Form 1040), line 18” field
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“20. Refigure your charitable contributions deduction using line 132 above as your adjusted gross income. (See instructions.)”
field
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“21. Subtract line 20 from line 19” field
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Under
“Adjustment to Casualty and Theft Losses:”
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“22. Enter your casualty and theft losses from Form 4684, line 20” field
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“23. Enter your casualty and theft losses from Form 4684, line 18” field
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“24. Multiply line 13 above by 10% (.10)” field
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“25. Subtract line 24 from line 23. Enter the result (but not less than zero)” field
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“26. Subtract line 25 from line 22” field
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Under
“Adjustment to Miscellaneous Deductions:”
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“27. Enter your miscellaneous deductions from Schedule A (Form 1040), line 26” field
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“28. Enter your miscellaneous deductions from Schedule A (Form 1040), line 23” field
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“29. Multiply line 13 above by 2% (.02)” field
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“30. Subtract line 29 from line 28. Enter the result (but not less than zero)” field
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“31. Subtract line 30 from line 27” field
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Under
“Tentative Total Adjustment:”
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“32. Combine lines 18, 21, 26, and 31, and enter the result here. If line 13 above is $145,950 or less ($72,975 or less if
married filing
separately), also enter the result on line 7 above and stop here. Otherwise, go to line 33”
field
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