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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13343
Experience:  15years with H & R Block. Divisional leader, Instructor
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I am trying to learn how to calculate NOL

Customer Question

I am trying to learn how to calculate AMT NOL
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.
Hello and thanks for trusting me to help you today. I am a tax adviser with over 20 years of experience.
AMT NOL does not always equal the regular tax NOL but the regular is your starting point.
Section 56(d)(2) provides that the AMT NOL deduction is calculated first by starting with the regular tax NOL and making certain modifications. The regular tax NOL is modified by AMT adjustments and reduced by items of tax preference, but only to the extent the preference items are included in the regular tax NOL.
The alternative net operating loss deduction does not allow you to factor in many common expenses, including investment fees, state and local taxes the company paid, and accelerated depreciation of equipment and other business property. These are those certain modifications mentioned.
One thing to remember is that your AMT NOL cannot exceed 90% of your AMT income.
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Here is a worksheet that should make it easier to do the calculation
http://www.scribd.com/doc/107107057/AMT-NOL-Calculation-Worksheet#scribd