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R. Klein, EA
R. Klein, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 3375
Experience:  Over 20 Years experience
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I HAVE QUESTION REGARDING AMT NOL CARRYOVER. has a NOL from

Customer Question

I HAVE QUESTION REGARDING AMT NOL CARRYOVER. has a NOL from s corporation
last year for 148k. like to know how to calculate AMT NOL carryforward from NOL
Submitted: 3 years ago.
Category: Tax
Expert:  R. Klein, EA replied 3 years ago.

Randalltax : Thank you for contacting me about your Tax issue. I will work hard to help you understand the issue clearly.
Randalltax : S corps don't have NOLs themselves.
Randalltax : do not mix up a loss with an NOL. They are NOT the same thing. When an S Corp has a loss, it passes through to the shareholders 1040. This may OR may not result in an NOL which is when your entire adjusted gross income is negative and then some.
Randalltax : An S Corp will not generate an NOL unless you had sufficient basis in the first place. It is common for an S Corp loss to not have much effect on the 1040 if there is insufficient basis in the corporation, in which case the loss or a portion of the loss is suspended.
Randalltax : In the went you really have an NOL, you actually need to calculate the NOL amount twice, once under the regular tax rules, and once including an AMT preference items. For most people, this means usually not counting certain accelerated depreciation.
JACUSTOMER-f6css4po- :

in 2011 i have NOL ( box 1 ordinary income) -148k but due to accelerated depreciation in 2012 ( 15a on k1 ) is

Randalltax :

An NOL is not Box 1 of the K-1.

Randalltax :

What is your AGI (Line 37 of Form 1040) for 2011?