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It seems to me that those calculations are merely noting that a (non-business) capital loss isn't allowable for the calculation of "business income" for the purpose of the NOL carryforward.
I'm going to be heading out shortly (3:15 pm PST). I should be back in 4-6 hours. If you can provide more details about what's on the form, it would be appreciated.
NOL is a actually an individual concept (just reading IRS Pub 536), though it most often comes into play through a business loss. (It can also be disaster loss, etc.)
Thus, the calculation is looking at things like personal income and deductions, rather than just business ones. The Sch C results are just one part of it.
Not sure if the formatting was lost in my original submission (JustAnswer has kept it before, but what I'm seeing on the screen of my original submission is one big paragraph). So, I'll copy the calculation columns below:
Maybe the botXXXXX XXXXXne is that, if I look at my NOL and capital loss reductions, they total $3000 more than line 5, which is thus $3000 more than I believe I should be taxed on.
(I'm OK to use the actual dollar amounts, as it may be clearer, if JustAnswer doesn't make the response public.)
(The part I'm referencing is p3 of http://www.ftb.ca.gov/forms/2010/10_3805v.pdf.)
The California Capital Loss Carryover Worksheet (in the Schedule D instructions) seems to reinclude the $3000 in the carryover if taxable income, disregarding the loss, is still negative. I believe line 5 of the worksheet would be negative, so the entire amount of line 6 (Schedule D line 8) is available for carryover.
You can request the question be locked, if the specific dollar amounts seem to be helpful, but I think I've found where the $3000 goes.
That's it! Thanks. I find it challenging to follow the data trail through their forms.
I'd somehow also misread the cap loss carryover, and thought I'd seen it reduced by $3000, which it's not. Who knows where I went wrong (except trying to check it Sunday night after 2 days working on taxes). Thanks again.