Instructions For 2003 Form Fia-40 - Farm Income Averaging (Page 2 of 3) in pdf

5. Add line 1 and line 4.

Do not include any NOLD carry-

Enter the result here, and

over or carryback from other

on Form FIA-40, line 5 ......................... $ ___________

years if you had a NOL in 2002.

Enter the result here ............................. $ ___________

Line 9. If you used FIA-40 to figure your tax for 2002, enter

12. If there is a loss on your 2002

the amount from your 2002 FIA-40, line 15, on line 9. If you

federal Schedule D, line 18,

used Schedule Z to figure your tax for 2002, enter on line 9

add that loss (as a positive

the amount from your 2002 Schedule Z, Computation for

amount) and your 2002 capital

Tax Year 2001. If you used Computation A, use the amount

loss carryover to tax year 2003.

on line 9. If you used Computation B, use the amount on line

Subtract from that sum the

6. If you used Computation C, use the amount on line 3. If

amount of the loss on your

your 2001 taxable income was -0- or less, use the worksheet

2002 federal Schedule D,

below to figure the amount to enter on Form FIA-40, line 9.

line 17. Enter the result here ................ $ ___________

2001 Taxable Income Worksheet

13. If you had an NOL for 2002,

enter it as a positive amount

6. Figure the taxable income from

here. Otherwise, enter the portion

your 2001 tax return without

(if any) of the NOLD carryovers

limiting it to -0-. Include any

and carrybacks to 2002 that were

NOLD carryovers or carrybacks

not used in 2002 and were carried

if you did not have a NOL in 2001.

to tax years after 2002 as a positive

Do not include any NOLD carry-

amount here ........................................... $ ___________

over or carryback from other

14. Add lines 12 and 13 .............................. $ ___________

years if you had a NOL in 2001.

15. Add line 11 and line 14.

Enter the result here ............................. $ ___________

Enter the result here and on

7. If there is a loss on your 2001

Form FIA-40, line 13 ............................. $ ___________

federal Schedule D, line 18, add

that loss (as a positive amount)

Example. John Farmington did not use farm income aver-

and your 2001 capital loss carry-

aging for 2000, 2001, or 2002. For tax year 2003, John has

over to 2002. Subtract from that

elected farm income on Form FIA-40, line 2 of $18,000. His

sum the amount of the loss on

Oregon taxable income shown on his 2000 Form 40, line 28,

your 2001 federal Schedule D,

is $6,150.

line 17. Enter the result here ................ $ ___________

8. If you had an NOL for 2001,

John had a net operating loss (NOL) for tax year 2001 of

enter it as a positive amount

$22,950, which he elected to carryback five years. Of the

here. Otherwise, enter the

$22,950 loss, $9,000 was carried back to tax year 2000. To

portion (if any) of the NOLD

complete line 1 of the 2000 worksheet, John combines the

carryovers and carrybacks to

$9,000 net operating loss deduction (NOLD) with his Or-

2001 that were not used in 2001

egon taxable income of $6,150 from Form 40, line 28. The

and were carried to tax years

result, a negative $2,850, is entered on line 1 of the 2000

after 2001 as a positive

worksheet.

amount here ........................................... $ ___________

When John filed his 2000 tax return, he had a $3,000 net capi-

9. Add lines 7 and 8 .................................. $ ___________

tal loss deduction on federal Schedule D, line 18, a $7,000

10. Add line 6 and line 9. Enter

loss on federal Schedule D, line 17, and a $4,000 capital loss

the result here and on

carryover to 2001. However, when John carried back the

Form FIA-40, line 9 ............................... $ ___________

2001 NOL to 2000, he refigured his 2000 capital loss

Line 13. If you used FIA-40 to figure your tax for 2002, en-

carryover to tax year 2001 as $7,000. To calculate line 2 of

ter the amount from your 2002 FIA-40, line 3, on line 13. If

the 2000 worksheet, John adds the $3,000 from federal

you used FIA-40N to figure your tax for 2002, enter on line

Schedule D, line 18, and the $7,000 carryover. He subtracts

13 the amount from the 2002 FIA-40N, line 9. If you used

from the result the $7,000 loss on his federal Schedule D, line

FIA-40P to figure your tax for 2002, enter on line 13 the

17, and enters $3,000 on line 2 of the 2000 worksheet.

amount from the 2002 FIA-40P, line 6. If your 2002 taxable

John had $6,150 of Oregon taxable income in 2000 that

income was -0- or less, use the worksheet below to figure

reduced the 2001 NOL carryback. The $3,000 net capital loss

the amount to enter on Form FIA-40, line 13.

deduction also reduced the amount of the 2001 NOL

2002 Taxable Income Worksheet

carryback. Since these two figures together total $9,150, there

11. Figure the taxable income from

is no NOLD left to carry over to tax year 2002. Therefore,

your 2002 tax return without

John enters -0- on line 3. He adds line 2 and line 3 and

limiting it to -0-. Include any

enters the result, $3,000, on line 4 of the worksheet. John

NOLD carryovers or carrybacks

adds line 1, a negative $2,850, plus line 4, a positive $3,000,

if you did not have a NOL in 2002.

and enters the result, a positive $150, on Form FIA-40,

Instructions For 2003 Form Fia-40 - Farm Income Averaging Page 2

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