Instructions For Form 1045 - Application For Tentative Refund

annuities, and interest on

NOLs that occurred in tax years

special rule applies if you received

investments.

before 2002 and are otherwise

social security benefits and deducted

allowable as carrybacks or

IRA contributions. Use the

Do not enter business income on

carryovers.

worksheets in Pub. 590, Individual

line 10. This is income from a trade or

Retirement Arrangements (IRAs), to

Note: If your taxable income is

business and includes:

•

refigure your taxable social security

shown as zero on your tax return (or

Salaries and wages.

•

benefits and IRA deductions under

as previously adjusted) for any

Rental income.

•

the special rule.

carryback year, refigure it without

Gain on the sale or exchange of

limiting the result to zero, and enter it

business real estate or depreciable

Enter on line 5 the total

on line 2 as a negative number.

property.

adjustments made to the listed items.

•

Your share of business income

Attach a computation showing how

Line 3—Net Capital Loss

from a partnership or an S

you figured the adjustments.

Deduction

corporation.

Line 6—Adjustment to

For more details on business and

Individuals. Enter as a positive

Itemized Deductions

nonbusiness income and deductions,

number the amount, if any, shown (or

see Pub. 536.

as previously adjusted) on Schedule

Individuals. Skip this line if, for the

D (Form 1040), line 18 (line 20 for

Line 20—Section 1202

applicable carryback year:

•

1992; line 19 for 1993 –96).

You did not itemize deductions or

Exclusion

•

The amounts on Schedule B, line 3

Estates and trusts. Enter as a

Enter as a positive number any gain

and line 4, are zero.

positive number the amount, if any,

excluded under section 1202 on the

Otherwise, complete lines 10 through

shown (or as previously adjusted) on

sale or exchange of qualified small

34 and enter on line 6 the amount

Schedule D (Form 1041), line 17 (line

business stock.

from line 34 (or, if applicable, line 12

18 for 1992 – 96).

of the worksheet on page 8).

Schedule B—NOL

Line 4—Section 1202

Estates and trusts. Recompute the

Exclusion

Carryover

miscellaneous itemized deductions

Enter as a positive number any gain

shown (or as previously adjusted) on

Complete and file this schedule to

excluded under section 1202 on the

Form 1041, line 15b, and any

determine the NOL deduction for

sale or exchange of qualified small

casualty or theft losses shown (or as

each carryback year and the amount

business stock.

previously adjusted) on Form 4684,

to be carried forward, if not fully

Casualties and Thefts, line 18, by

absorbed.

Line 5—Adjustments to

substituting modified adjusted gross

If an NOL is more than the

Adjusted Gross Income

income (see below) for the adjusted

modified taxable income for the

gross income of the estate or trust.

If you entered an amount on line 3 or

earliest year to which it is carried, you

line 4, you must refigure certain

Subtract the recomputed deductions

must file Schedule B to figure the

and losses from the deductions and

income and deductions based on

amount of the NOL to be carried to

losses previously shown, and enter

adjusted gross income. These

the next tax year. The amount of the

the difference on line 6.

include:

carryover is the excess, if any, of the

•

The special allowance for passive

Modified adjusted gross income

NOL carryback over the modified

activity losses from rental real estate

for estates and trusts. For

taxable income for that earlier year.

activities.

purposes of figuring miscellaneous

Modified taxable income is the

•

Taxable social security benefits.

itemized deductions subject to the 2%

amount figured on line 8 of Schedule

•

IRA deductions.

limit, figure modified adjusted gross

•

Excludable savings bond interest.

income by adding the following

•

The exclusion of amounts received

If you carry two or more NOLs

amounts to the adjusted gross

to a tax year, figure your

under an employer’s adoption

income previously used to figure

modified taxable income by

assistance program.

CAUTION

these deductions.

•

The student loan interest

deducting the NOLs in the order in

The total of the amounts from lines

which they were incurred. First,

deduction.

3 through 5 of Form 1045, Schedule

For purposes of figuring the

deduct the NOL from the earliest

•

year, then the NOL from the next

adjustment to each of these items,

The exemption amount shown (or

earliest year, etc. After you deduct

your adjusted gross income is

as previously adjusted) on Form

increased by the total of the amounts

each NOL, there will be a new,

1041, line 20 (line 21 for 1997), and

•

smaller, modified taxable income to

on line 3 and line 4. Do not take into

The income distribution deduction

account any NOL carryback from

compare to any remaining NOL.

shown (or as previously adjusted) on

2002 or later.

Form 1041, line 18.

Make the same entries in each

Generally, figure the adjustment to

For purposes of figuring casualty

column heading as on page 1 of

each item of income or deduction in

or theft losses, figure modified

Form 1045 (see the instructions for

the order listed above and, when

adjusted gross income by adding the

lines 10 through 28 on page 3).

figuring the adjustment to each

total of the amounts from lines 3

Line 2

subsequent item, increase or

through 5 of Form 1045, Schedule B,

Do not take into account on this line

decrease adjusted gross income by

to the adjusted gross income

any NOL carryback from 2002 or

the total adjustments you figured for

previously used to figure these

later. However, do take into account

the previous items. However, a

losses.

-6-

Instructions For Form 1045 - Application For Tentative Refund - 2002 Page 6

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