Thank you for using Just Answer. I understand you have a question about California form 3805V.
Yes, I am trying to calculate my NOL usage for my Cal 2012 tax return (due 10/15).
In Part II, you calculate the MTI (Modified Taxable Income), by adding back the NOL used to calculate the income on Part II line 1.
So it's the NOL before the current year's usage.
I have no current year NOLs, just NOLs from 2008-2011. Ok so -- its total NOLs before usage, correct?
Yes. The MTI is used to determine the calculation in Part III as to how much of the NOL is to be carried forward to 2013 and succeeding years.
It doesn't affect anything else on your 2012 return.
So, that makes MTI = 67K -- but then when I show that usage in Part III, column f, it reduces the total NOLs down in Part II line 5.
OK, so line 5 of Part III is for 2013 return prep?
Yes, that is correct.
I think I understand, but let me confirm this:
Confirm this: Part II, line 4 (MTI cal) = Total NOLs before any current year usage and Part III, Line 5 = Total NOLs remaining after current year usage
Cool, you solved, many thanks -- positive feedback will be left of course!