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PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4514
Experience:  35 years tax experience, including four years at a Big 4 firm.
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Is single with no dependents and runs his own barber shop

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Larry is single with no dependents and runs his own barber shop business. He had a
$15,000 NOL in tax year 2014 and elected to waive the carryback period and carry forward
the entire NOL. He has not had an NOL for any other tax year. For 2015, Larry’s return
does not require Schedule A, he has no income adjustments other than the deduction for
50% of his SE tax ($3,500). He also has a deduction for capital losses in excess of capital
gains of $2,000. His taxable income is $8,000 without the NOL deduction. What is his
modified taxable income which determines how much NOL is used for tax year 2015?How much, if any, of Larry’s NOL will carry forward to the next tax year?

Hi from just answer. I'm PDtax. I'll assist.

I want to put your question through our tax software to confirm the math, and i can do that shortly.

Customer: replied 9 months ago.
Thank you, PDtax
Reading through Pub 536 and Form 1045 instructions confused me. I could not tell which Schedule or worksheet to use and how to set up the calculation.
Thank you, ***** *****

I used 49542 schedule C (to create the $3,500 SE deduction), a $2,000 capital loss, and 25,742 as another loss item to arrive at $8,000 taxable income for 2015 before the NOL.

His modified taxable income is taxable income plus exemption ($12,000) plus nonbusiness capital losses of $2,000, for a total of $14,000. That means there is $1,000 available for carryover to 2016.

Thanks again for asking at Just Answer. Positive feedback and a binus if warranted are appreciated. I'm PDtax.

Customer: replied 9 months ago.
Thank you, ***** ***** me review and see if I can calculate these numbers on the forms. I will follow-up with you. Thank you so much.

Hi again. PDtax here.

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Hi again. PDtax here.

The end of the month is coming, and I would ask that you rate my assistance to close out your inquiry. It allows site management to credit me with assisting. Thanks.


I made the offer here because I could not make another premium service offer in the other thread.

PDtax and other Tax Specialists are ready to help you
Customer: replied 8 months ago.
OK, sure.....Apologies. When do you want to call?

I'll call tomorrow, afternoon EST.

Customer: replied 8 months ago.
I will not get home from work until about 4:30 EDT. Can you call then? Monday afternoon at 4:30PM EDT?
Or, any time after that?
Thank you. I am hoping we can do this tomorrow. Can you send me any information on what you came up with until we talk?
Customer: replied 8 months ago.
Hello, PDTax:
I am home and ready when you are

5:15 EST.

Customer: replied 8 months ago.
Thank You