Instructions For Form 1045 - 2003 (Page 6 of 8) in pdf

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Salaries and wages.

allowable as carrybacks or

the total adjustments you figured for

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Rental income.

carryovers.

the previous items. However, a

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Gain on the sale or exchange of

special rule applies if you received

Note: If your taxable income is

business real estate or depreciable

social security benefits and deducted

shown as zero on your tax return (or

property.

IRA contributions. Use the

as previously adjusted) for any

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Your share of business income

worksheets in Pub. 590, Individual

carryback year, refigure it without

from a partnership or an S

Retirement Arrangements (IRAs), to

limiting the result to zero, and enter it

corporation.

refigure your taxable social security

on line 2 as a negative number.

benefits and IRA deductions under

For more details on business and

Line 3—Net Capital Loss

the special rule.

nonbusiness income and deductions,

Deduction

see Pub. 536.

Enter on line 5 the total

adjustments made to the listed items.

Individuals. Enter as a positive

Line 20—Section 1202

Attach a computation showing how

number the amount, if any, shown (or

Exclusion

you figured the adjustments.

as previously adjusted) on Schedule

Enter as a positive number any gain

D (Form 1040), line 18 (line 19 for

Line 6—Adjustment to

excluded under section 1202 on the

1993 – 1996).

Itemized Deductions

sale or exchange of qualified small

Estates and trusts. Enter as a

business stock.

Individuals. Skip this line if, for the

positive number the amount, if any,

applicable carryback year:

shown (or as previously adjusted) on

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Schedule B—NOL

You did not itemize deductions or

Schedule D (Form 1041), line 17 (line

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The amounts on Schedule B, line 3

18 for 1993 – 1996).

Carryover

and line 4, are zero.

Line 4—Section 1202

Complete and file this schedule to

Otherwise, complete lines 10 through

determine the NOL deduction for

Exclusion

34 and enter on line 6 the amount

each carryback year and the amount

from line 34 (or, if applicable, line 12

Enter as a positive number any gain

to be carried forward, if not fully

of the worksheet on page 8).

excluded under section 1202 on the

absorbed.

sale or exchange of qualified small

Estates and trusts. Recompute the

If an NOL is more than the

business stock.

miscellaneous itemized deductions

modified taxable income for the

shown (or as previously adjusted) on

Line 5—Adjustments to

earliest year to which it is carried, you

Form 1041, line 15b, and any

must file Schedule B to figure the

Adjusted Gross Income

casualty or theft losses shown (or as

amount of the NOL to be carried to

previously adjusted) on Form 4684,

If you entered an amount on line 3 or

the next tax year. The amount of the

Casualties and Thefts, line 18, by

line 4, you must refigure certain

carryover is the excess, if any, of the

substituting modified adjusted gross

income and deductions based on

NOL carryback over the modified

income (see below) for the adjusted

adjusted gross income. These

taxable income for that earlier year.

gross income of the estate or trust.

include:

•

Modified taxable income is the

Subtract the recomputed deductions

The special allowance for passive

amount figured on line 8 of

and losses from the deductions and

activity losses from rental real estate

Schedule B.

losses previously shown, and enter

activities.

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the difference on line 6.

Taxable social security benefits.

If you carry two or more NOLs

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IRA deductions.

to a tax year, figure your

Modified adjusted gross income

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Excludable savings bond interest.

for estates and trusts. For

modified taxable income by

CAUTION

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The exclusion of amounts received

purposes of figuring miscellaneous

deducting the NOLs in the order in

under an employer’s adoption

which they were incurred. First,

itemized deductions subject to the 2%

assistance program.

deduct the NOL from the earliest

limit, figure modified adjusted gross

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The student loan interest

income by adding the following

year, then the NOL from the next

deduction.

amounts to the adjusted gross

earliest year, etc. After you deduct

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Tuition and fees deduction.

income previously used to figure

each NOL, there will be a new,

smaller, modified taxable income to

these deductions.

For purposes of figuring the

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compare to any remaining NOL.

The total of the amounts from lines

adjustment to each of these items,

3 through 5 of Form 1045,

your adjusted gross income is

Make the same entries in each

Schedule B,

increased by the total of the amounts

column heading as on page 1 of

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The exemption amount shown (or

on line 3 and line 4. Do not take into

Form 1045 (see the instructions for

as previously adjusted) on Form

account any NOL carryback from

lines 10 through 28 on page 3).

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

2003 or later.

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Line 2

The income distribution deduction

Generally, figure the adjustment to

shown (or as previously adjusted) on

Do not take into account on this line

each item of income or deduction in

Form 1041, line 18.

any NOL carryback from 2003 or

the order listed above and, when

later. However, do take into account

figuring the adjustment to each

For purposes of figuring casualty

NOLs that occurred in tax years

subsequent item, increase or

or theft losses, figure modified

before 2003 and are otherwise

decrease adjusted gross income by

adjusted gross income by adding the

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Instructions For Form 1045 - 2003 Page 6

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