2001 Instructions For Form 1045 (Page 2 of 6) in pdf

Excessive Allowances

rules apply to figuring the carryback. See the

you apply the NOL or net section 1256

Instructions for Form 3800.

contracts loss carryback. Amounts to refigure

Any amount applied, credited, or refunded

include:

based on this application that the IRS later

•

Line 1c—Net Section 1256

The special allowance for passive activity

determines to be excessive may be billed as if

losses from rental real estate activities.

Contracts Loss

it were due to a math or clerical error on the

•

Taxable social security benefits.

return.

•

You may elect to carryback a net section 1256

IRA deductions.

•

contracts loss to each of the 3 tax years

The student loan interest deduction.

Form 1040X or Other

•

preceding the loss year. To make the election,

Excludable savings bond interest.

•

check box D at the top of Form 6781, Gains

The exclusion of amounts received under an

Amended Return

and Losses From Section 1256 Contracts and

employer’s adoption assistance program.

•

Individuals may get a refund by filing Form

Straddles. The amount which may be used in

Medical expenses.

•

1040X, Amended U.S. Individual Income Tax

any prior tax year cannot exceed the net

Personal casualty and theft losses.

•

Return, instead of Form 1045. An estate or

section 1256 contract gain in that year and

Miscellaneous deductions subject to the 2%

trust may file an amended Form 1041, U.S.

limit.

may not increase or create an NOL for that

•

Income Tax Return for Estates and Trusts.

Itemized deductions subject to the overall

year. Reflect the carryback as a reduction to

Generally, you must file an amended return no

limit of section 68.

your adjusted gross income in the “After

•

later than 3 years after the due date of the

The phaseout of the deduction for personal

carryback” column on line 10. Attach to Form

return for the applicable tax year.

exemptions.

1045 a copy of Form 6781 for the year of the

•

The credit for child and dependent care

net section 1256 contracts loss and an

If you use Form 1040X or other amended

expenses.

amended Form 6781 for each carryback year.

return, follow the instructions for that return.

•

The credit for the elderly or the disabled.

For more details, see section 1212(c).

Attach to the amended return a copy of

•

Education credits.

Schedule A of Form 1045 showing the

•

Line 9

The child tax credit.

computation of the NOL and, if applicable, a

•

The adoption credit.

copy of Schedule B of Form 1045 showing the

If an NOL or net section 1256 contracts loss

•

The District of Columbia first-time

computation of the NOL carryover. Complete a

carryback eliminates or reduces a prior year

homebuyer credit.

separate Form 1040X or other amended return

foreign tax credit, you may not use Form 1045

However, refigure your charitable

for each year for which you request an

to carry the released foreign tax credits to

contributions deduction without regard to any

adjustment.

earlier years. Also, if the released foreign tax

NOL carryback.

credits result in the release of general business

The procedures for Form 1040X and Form

Any credits based on or limited by the tax

credits, you may not use Form 1045 to carry

1045 are different. The IRS is not required to

must be refigured using your tax liability

the released general business credits to earlier

process your Form 1040X within 90 days.

determined after you apply the NOL or net

years. Instead, you must file Form 1040X or

However, if we do not process it within 6

section 1256 contracts loss carryback.

other amended return to claim refunds for

months from the date you file it, you may file

those years. For details, see Rev. Rul. 82-154,

If you have an NOL, see Pub. 536 for more

suit in court. If the IRS disallows your claim on

1982-2 C.B. 394.

information and examples.

Form 1040X and you disagree with that

determination, you must file suit no later than 2

Lines 10 Through 28—

Line 11—NOL Deduction

years after the date we disallow it.

Computation of Decrease in

After Carryback

Additional Information

Tax

Use the following rules to figure the tax years

For more details on NOLs, see Pub. 536, Net

to which you must carry an NOL shown on

Use one pair of columns to enter amounts

Operating Losses (NOLs) for Individuals,

Schedule A, line 27. If an NOL is not fully

before and after carryback for each year to

Estates, and Trusts.

absorbed in a year to which it is carried,

which the loss is being carried. Start with the

complete Schedule B to figure the amount to

earliest carryback year. A net section 1256

carry to the next carryback year.

contracts loss can be carried back 3 years.

Specific Instructions

General rule. You generally must carry back

See the instructions for line 11 on this page to

the entire NOL to the 2nd tax year before the

figure the tax years to which you may carry an

loss year. Any loss not used in the 2nd

NOL. Use the remaining pairs of columns for

preceding year is then carried to the 1st

Address

each consecutive preceding tax year until the

preceding year. Any loss not applied in the 2

loss is fully absorbed. Enter the ordinal number

P.O. box. Enter your box number only if your

preceding years may be carried forward up to

of years the loss is being carried back and the

post office does not deliver mail to your street

20 years.

date the carryback year ends in the spaces

address.

Eligible losses. To the extent an NOL is an

provided in the headings above line 10 for

eligible loss (defined on page 1), it is carried

Foreign address. Enter the information in the

each pair of columns.

back to the 3rd tax year before the loss. Any

following order: City, province or state, and

Example. Your tax year is the 2001

loss not used in that year is carried to the 2nd

country. Follow the country’s practice for

calendar year and you are carrying an NOL

and then the 1st preceding year. Any eligible

entering the postal code. Do not abbreviate

back 2 years. You enter “2nd” and “12/31/99”

loss not applied in the 3 preceding years may

the country name.

in the left column heading in the spaces

be carried forward up to 20 years.

provided. The column heading now reads “2nd

Line 1b—Unused General

preceding tax year ended 12/31/99.”

Only the eligible loss portion of an NOL

may be carried back 3 years.

For each carryback year, enter in the

Business Credit

column labeled “Before carryback” the

Example. You have a $20,000 NOL of

If you claim a tentative refund based on the

amounts for the carryback year as shown on

which only $5,000 is an eligible loss. The

carryback of an unused general business

your original or amended return. If the amounts

$5,000 eligible loss is carried back 3 years, but

credit, attach a detailed computation showing

were previously adjusted by you or the IRS,

the remaining $15,000 loss is carried back only

how you figured the credit carryback and a

enter the amounts after adjustment.

2 years, although you had modified taxable

recomputation of the credit after you apply the

income of more than $5,000 in the 3rd

Computation of income, deductions, and

carryback. Make the recomputation on Form

preceding year.

credits when an NOL is fully absorbed or a

3800 (or Form 8844, Empowerment Zone

net section 1256 contracts loss is carried

Farming losses. To the extent an NOL is a

Employment Credit, if applicable) for the tax

back. To refigure your tax for the year in which

farming loss (defined on page 1), it is carried

year of the tentative allowance.

an NOL is fully absorbed, refigure any income,

back to the 5th tax year before the loss. Any

If you filed a joint return (or separate return)

deductions, and credits based on or limited to a

farming loss not used in that year is carried to

for some but not all of the tax years involved in

percentage of your adjusted gross income. Use

the 4th preceding year and then applied

figuring the unused credit carryback, special

your adjusted gross income determined after

consecutively forward through the 1st

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2001 Instructions For Form 1045 Page 2

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