Instructions For Form 1045 - 2003 (Page 3 of 8) in pdf

cannot exceed the net section 1256

For each carryback year, enter in

your taxable income was reduced to

contract gain in that year and may not

the column labeled “Before

less than $12,000.

increase or create an NOL for that

carryback” the amounts for the

Any credits based on or limited by

year. Reflect the carryback as a

carryback year as shown on your

the tax must be refigured using your

reduction to your adjusted gross

original or amended return. If the

tax liability determined after you apply

income in the “After carryback”

amounts were previously adjusted by

the NOL or net section 1256

column on line 10. Attach to Form

you or the IRS, enter the amounts

contracts loss carryback.

1045 a copy of Form 6781 and

after adjustment.

If you have an NOL, see Pub. 536

Schedule D (Form 1040) for the year

Computation of income,

for more information and examples.

of the net section 1256 contracts loss

deductions, and credits when an

and an amended Form 6781 and an

NOL is fully absorbed or a net

Line 11—NOL Deduction

amended Schedule D (Form 1040)

section 1256 contracts loss is

for each carryback year. For more

After Carryback

carried back. To refigure your tax for

details, see section 1212(c).

the year in which an NOL is fully

Use the following rules to figure the

absorbed or a net section 1256

tax years to which you must carry an

Line 9

contracts loss is carried back, refigure

NOL shown on Schedule A, line 27. If

If an NOL or net section 1256

any income, deductions, and credits

an NOL is not fully absorbed in a year

contracts loss carryback eliminates or

based on or limited to a percentage of

to which it is carried, complete

reduces a prior year foreign tax

your adjusted gross income. Use your

Schedule B to figure the amount to

adjusted gross income determined

credit, you may not use Form 1045 to

carry to the next carryback year.

carry the released foreign tax credits

after you apply the NOL or net

Note: You may need to use

to earlier years. Also, if the released

section 1256 contracts loss

additional Forms 1045 to carry back

foreign tax credits result in the

carryback. Amounts to refigure

an NOL. Complete lines 1 through 9

release of general business credits,

include:

•

and Schedule A on only one Form

you may not use Form 1045 to carry

The special allowance for passive

1045. Use this Form 1045 for the

the released general business credits

activity losses from rental real estate

earliest preceding tax years. You

to earlier years. Instead, you must file

activities.

•

must sign this Form 1045, but do not

Form 1040X or other amended return

Taxable social security benefits.

•

need to sign the other Forms 1045.

IRA deductions.

to claim refunds for those years. For

•

details, see Rev. Rul. 82-154, 1982-2

The student loan interest

General rule. You generally must

C.B. 394.

deduction.

carry back the entire NOL to the 2nd

•

Tuition and fees deduction.

tax year before the loss year. Any

•

Excludable savings bond interest.

loss not used in the 2nd preceding

Lines 10 Through 28—

•

The exclusion of amounts received

year is then carried to the 1st

Computation of

under an employer’s adoption

preceding year. Any loss not applied

assistance program.

in the 2 preceding years may be

Decrease in Tax

•

Medical expenses.

carried forward up to 20 years. The

•

Use one pair of columns to enter

2-year carryback period does not

Personal casualty and theft losses.

•

amounts before and after carryback

Miscellaneous deductions subject

apply to the portion of an NOL

for each year to which the loss is

to the 2% limit.

attributable to an eligible loss, a

•

being carried. Start with the earliest

Itemized deductions subject to the

farming loss, or a specified liability

carryback year. A net section 1256

loss.

overall limit of section 68.

•

contracts loss can be carried back 3

The phaseout of the deduction for

Eligible losses. To the extent the

years. See the instructions for line 11

personal exemptions.

NOL is an eligible loss (defined on

•

on this page to figure the tax years to

The credit for child and dependent

page 1), it is carried back to the 3rd

which you may carry an NOL. Use

care expenses.

tax year before the loss. Any loss not

•

the remaining pairs of columns for

The credit for the elderly or the

used in that year is carried to the 2nd

each consecutive preceding tax year

disabled.

and then the 1st preceding year. Any

•

until the loss is fully absorbed. Enter

Education credits.

such loss that is not applied in the 3

•

the ordinal number of years the loss

Retirement savings contributions

preceding years may be carried

is being carried back and the date the

credit.

forward up to 20 years.

•

carryback year ends in the spaces

The child tax credit.

•

provided in the headings above line

Only the eligible loss portion of the

The adoption credit.

•

10 for each pair of columns.

NOL may be carried back 3 years.

The District of Columbia first-time

homebuyer credit.

Example. Your tax year is the

Example. You have a $20,000

•

The earned income credit.

2003 calendar year and you are

NOL of which only $5,000 is an

carrying an NOL back 2 years. You

eligible loss. The $5,000 eligible loss

However, refigure your charitable

enter “2nd” and “12/31/01” in the left

is carried back 3 years, but the

contributions deduction without

column heading in the spaces

remaining $15,000 loss is carried

regard to any NOL carryback.

provided. The column heading now

back only 2 years, although you had

reads “2nd preceding tax year ended

For 2001, you also may have to

modified taxable income of more than

12/31/01.”

refigure your rate reduction credit if

$5,000 in the 3rd preceding year.

-3-

Instructions For Form 1045 - 2003 Page 3

Related Articles

Related forms

Related Categories