Instructions For Form 1045 - Application For Tentative Refund

Form 3800 for more details on

Line 2—Nonbusiness Capital Line 7—Nonbusiness

general business credit carrybacks.

Losses

Income Other Than Capital

Gains

Do not include on this line any section

Line 20—Other Credits

1202 exclusion amounts (even if

Enter income that is not from a trade

See your tax return for the carryback

entered as losses on Schedule D

or business. Examples are ordinary

year for any additional credits such as

(Form 1040) or Schedule D (Form

dividends, annuities, and interest on

the earned income credit, credit for

1041).

investments.

child and dependent care expenses,

Do not enter business income on

child tax credit, education credits,

Line 6—Nonbusiness

line 7. This is income from a trade or

foreign tax credit, retirement savings

Deductions

contributions credit, etc., that will

business and includes:

•

Enter as a positive number

Salaries and wages,

apply in that year. If you make an

•

deductions that are not connected

Rental income,

entry on this line, identify the credit(s)

•

with a trade or business. They

claimed.

Gain on the sale or exchange of

include:

business real estate or depreciable

After carryback. Refigure any

•

IRA deductions,

property, and

credits included on this line that are

•

Your share of business income

Health savings account deduction,

based on or limited by your tax

•

from a partnership or an S

Archer MSA deduction,

liability. Use your tax liability

corporation.

•

determined after you apply the NOL

Deductions for payments on behalf

or net section 1256 contracts loss

of a self-employed individual to a

For more details on business and

carryback.

SEP, SIMPLE, or qualified plan,

nonbusiness income and deductions,

•

see Pub. 536.

Alimony paid,

Line 23—

•

Most itemized deductions (except

Line 17—Section 1202

for state income tax on business

Self-Employment Tax

Exclusion

profits, casualty and theft losses, and

Do not adjust self-employment tax

any employee business expenses),

Enter as a positive number any gain

because of any carryback.

and

excluded under section 1202 on the

•

sale or exchange of qualified small

The standard deduction.

Line 24—Other Taxes

business stock.

Do not enter business deductions

See your tax return for the carryback

on line 6. These are deductions that

Schedule B—NOL

year for any other taxes not

are connected with a trade or

mentioned above, such as recapture

Carryover

business. They include:

taxes, tax on an IRA, etc., that will

•

State income tax on business

Complete and file this schedule to

apply in that year. If you make an

profits,

determine the NOL deduction for

entry on this line, identify the taxes

•

each carryback year and the amount

that apply.

Educator expenses,

•

to be carried forward, if not fully

Moving expenses,

•

Line 28—Overpayment

absorbed.

The deduction for one-half of

self-employment tax,

If an NOL is more than the

of Tax Under Section

•

modified taxable income for the

Domestic production activities

1341(b)(1)

earliest year to which it is carried, you

deduction,

•

must file Schedule B to figure the

If you apply for a tentative refund

Rental losses,

•

amount of the NOL to be carried to

based on an overpayment of tax

Loss on the sale or exchange of

the next tax year. The amount of the

under section 1341(b)(1), enter it on

business real estate or depreciable

carryover is the excess, if any, of the

this line. Also, attach a computation

property,

NOL carryback over the modified

•

showing the information required by

Your share of a business loss from

taxable income for that earlier year.

Regulations section 5.6411-1(d).

a partnership or an S corporation,

Modified taxable income is the

•

Ordinary loss on the sale or

amount figured on line 9 of

Signature

exchange of section 1244 (small

Schedule B.

business) stock,

Individuals. Sign and date Form

•

If you carry two or more NOLs

Ordinary loss on the sale or

1045. If Form 1045 is filed jointly,

to a tax year, figure your

exchange of stock in a small business

both spouses must sign.

modified taxable income by

investment company operating under

CAUTION

Estates. All executors or

deducting the NOLs in the order in

the Small Business Investment Act of

administrators must sign and date

which they were incurred. First,

1958,

Form 1045.

•

deduct the NOL from the earliest

Loss from the sale of accounts

Trusts. The fiduciary or an

year, then the NOL from the next

receivable if such accounts arose

authorized representative must sign

earliest year, etc. After you deduct

under the accrual method of

and date Form 1045.

each NOL, there will be a new,

accounting, and

smaller, modified taxable income to

•

If you itemized your deductions,

Schedule A—NOL

compare to any remaining NOL.

casualty and theft losses (even if they

involve nonbusiness property) and

Complete and file this schedule to

Make the same entries in each

determine the amount of the NOL that

employee business expenses (such

column heading as on page 1 of

is available for carryback or

as union dues, uniforms, tools, and

Form 1045 (see the instructions for

carryover.

educational expenses).

Lines 10 Through 27 on page 3).

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Instructions For Form 1045 - Application For Tentative Refund - 2006 Page 6

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