Instructions For Form 1045 - 2004 (Page 5 of 8) in pdf

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Your share of business income

Line 6—Nonbusiness

Line 20—Other Credits

from a partnership or an S

Deductions

See your tax return for the carryback

corporation.

Enter as a positive number

year for any additional credits such as

deductions that are not connected

For more details on business and

the earned income credit, credit for

with a trade or business. They

nonbusiness income and deductions,

child and dependent care expenses,

include:

see Pub. 536.

child tax credit, education credits,

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IRA deductions,

foreign tax credit, retirement savings

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Line 17—Section 1202

contributions credit, etc., that will

Archer MSA deduction,

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apply in that year. If you make an

Deductions for payments on behalf

Exclusion

entry on this line, identify the credit(s)

of a self-employed individual to a

Enter as a positive number any gain

claimed.

SEP, SIMPLE, or qualified plan,

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excluded under section 1202 on the

Alimony paid,

After carryback. Refigure any

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sale or exchange of qualified small

Most itemized deductions (except

credits included on this line that are

business stock.

for casualty and theft losses and any

based on or limited by your tax

employee business expenses), and

liability. Use your tax liability

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Schedule B—NOL

The standard deduction.

determined after you apply the NOL

or net section 1256 contracts loss

Carryover

Do not enter business deductions

carryback.

on line 6. These are deductions that

Complete and file this schedule to

are connected with a trade or

For 2001, you also may have to

determine the NOL deduction for

business. They include:

refigure your rate reduction credit if

each carryback year and the amount

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your taxable income was reduced to

State income tax on business

to be carried forward, if not fully

profits,

less than $12,000.

absorbed.

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Educator expenses,

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Line 23—

If an NOL is more than the

Moving expenses,

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modified taxable income for the

The deduction for one-half of

Self-Employment Tax

earliest year to which it is carried, you

self-employment tax,

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must file Schedule B to figure the

Do not adjust self-employment tax

Rental losses,

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amount of the NOL to be carried to

because of any carryback.

Loss on the sale or exchange of

the next tax year. The amount of the

business real estate or depreciable

Line 24—Other Taxes

carryover is the excess, if any, of the

property,

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NOL carryback over the modified

Your share of a business loss from

See your tax return for the carryback

taxable income for that earlier year.

a partnership or an S corporation,

year for any other taxes not

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Modified taxable income is the

Ordinary loss on the sale or

mentioned above, such as recapture

amount figured on line 8 of

exchange of section 1244 (small

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

Schedule B.

business) stock,

apply in that year. If you make an

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Ordinary loss on the sale or

entry on this line, identify the taxes

If you carry two or more NOLs

exchange of stock in a small business

that apply.

to a tax year, figure your

investment company operating under

modified taxable income by

CAUTION

the Small Business Investment Act of

Line 28—Overpayment

deducting the NOLs in the order in

1958,

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of Tax Under Section

which they were incurred. First,

Loss from the sale of accounts

deduct the NOL from the earliest

receivable if such accounts arose

1341(b)(1)

year, then the NOL from the next

under the accrual method of

earliest year, etc. After you deduct

If you apply for a tentative refund

accounting, and

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each NOL, there will be a new,

based on an overpayment of tax

If you itemized your deductions,

smaller, modified taxable income to

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

casualty and theft losses (even if they

compare to any remaining NOL.

this line. Also, attach a computation

involve nonbusiness property) and

showing the information required by

employee business expenses (such

Make the same entries in each

Regulations section 5.6411-1(d).

as union dues, uniforms, tools, and

column heading as on page 1 of

educational expenses).

Form 1045 (see the instructions for

Signature

lines 10 through 28 on page 3).

Line 7—Nonbusiness

Individuals. Sign and date Form

Income Other Than Capital

1045. If Form 1045 is filed jointly,

Line 2

both spouses must sign.

Gains

Do not take into account on this line

Estates. All executors or

Enter income that is not from a trade

any NOL carryback from 2004 or

administrators must sign and date

or business. Examples are ordinary

later. However, do take into account

Form 1045.

dividends, annuities, and interest on

NOLs that occurred in tax years

investments.

before 2004 and are otherwise

Trusts. The fiduciary or an

allowable as carrybacks or

authorized representative must sign

Do not enter business income on

carryovers.

and date Form 1045.

line 7. This is income from a trade or

business and includes:

Note. If your taxable income is

Schedule A—NOL

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Salaries and wages,

shown as zero on your tax return (or

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Complete and file this schedule to

Rental income,

as previously adjusted) for any

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determine the amount of the NOL that

Gain on the sale or exchange of

carryback year, refigure it without

is available for carryback or

business real estate or depreciable

limiting the result to zero, and enter it

property, and

carryover.

on line 2 as a negative number.

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Instructions For Form 1045 - 2004 Page 5

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