Form Nol-F85 - Computation Of Net Operating Loss Fiduciary Return (Form 41) Page 2
Download a blank fillable Form Nol-F85 - Computation Of Net Operating Loss Fiduciary Return (Form 41) in PDF format just by clicking the "DOWNLOAD PDF" button.
Open the file in any PDF-viewing software. Adobe Reader or any alternative for Windows or MacOS are required to access and complete fillable content.
Complete Form Nol-F85 - Computation Of Net Operating Loss Fiduciary Return (Form 41) with your personal data - all interactive fields are highlighted in places where you should type, access drop-down lists or select multiple-choice options.
Some fillable PDF-files have the option of saving the completed form that contains your own data for later use or sending it out straight away.
ADVERTISEMENT
1
2Instructions For Preparation of Alabama
Form NOL-F85
and disability income exclusions. In computing the amount of a
Computation of Net Operating Loss – Fiduciary Return
(Form 41). This form is used to compute the amount of net oper-
net operating loss originating for a particular taxable year, the fol-
ating loss originating in an estate or trust’s tax year. Part III of the
lowing modifications must be made: (i) no deduction may be taken
form is used to make an election to forfeit the carryback of the net
for any net operating loss carried over from another year, (ii) no
operating loss to a prior tax year. Estates and trusts are allowed
deduction is allowed for the personal exemption allowed by §40-
a net operating loss deduction by §40-18-15.2. Additional guid-
18-19, and (iii) nonbusiness deductions, including the federal in-
ance concerning the computation of the net operating loss, the car-
come tax deduction, may not exceed nonbusiness income.
rying back of the net operating loss, and the carrying forward of
Form Preparation
the net operating loss, can be obtained from Alabama Income Tax
Enter the loss year ending. Enter the name of the estate or
Regulation Number 810-3-15.2-.01. Visit the Alabama Department
trust and the federal employer identification number of the estate
of Revenue’s Web site ( alabama.gov) to obtain
or trust.
copies of Alabama income tax forms, schedules, and form prepa-
Part I – Excess of Nonbusiness Deductions Over Nonbusi-
ration instructions.
ness Income
Alabama Net Operating Loss. An Alabama net operating loss
In computing a net operating loss that originates in a tax year,
is the amount by which deductions (after modifications) exceed
nonbusiness deductions are allowed only to the extent of non-
gross income. A net operating loss may result from losses incurred
business income.
in a trade or business, from the sale of assets used in a trade or
Lines 1 through 3b – Enter the nonbusiness deductions
business, or from personal casualties or thefts. For the purpose of
claimed on the Alabama Form 41 for the tax year, as specified by
computing the amount of an allowable net operating loss, certain
the line instructions. For the items included in the amount for line
items of income, expense or deduction will be classified as “busi-
3b, provide a complete description and explanation.
ness” or “nonbusiness.” The following is a partial list of items reg-
Line 4. Enter the total of the amounts of lines 1 through 3b.
ularly classified as business or nonbusiness:
Lines 5 through 10. Enter the nonbusiness income reported
Business income, expense and deductions include, but are not
on the Alabama Form 41 for the tax year, as specified by the line
limited to: salary and wages; income or loss from a trade or busi-
instructions. For the items included in the amount for line 10, pro-
ness; gain or loss from sale of assets used in a trade or business;
vide a complete description and explanation.
losses on Internal Revenue Code §1244 stock (up to the amount
Line 11. Enter the total of lines 5 through 10.
of ordinary loss allowed for federal income tax purposes); rental
Line 12. The amount entered on line 12 must be zero, if non-
income or loss; income or loss from a partnership; income or loss
business income (line 11) exceeds nonbusiness deductions (line
from an Alabama S corporation; income or loss from farming; em-
4). Otherwise, subtract the amount on line 11 from the amount on
ployee moving expenses; employee business expenses; and ca-
line 4, and enter the result on line 12. The amount entered on line
sualty and theft losses.
12 must also be entered on line 15.
Part II – Computation of Net Operating Loss
Nonbusiness income, expense and deductions include, but
are not limited to: medical expenses; taxes; interest expense; char-
Line 13. Enter the amount from Alabama Form 41, page 1, line
itable contributions; miscellaneous deductions other than em-
5 (Alabama Taxable Income).
ployee business expenses; gain from the sale of a personal
Line 14. Enter the amount from Form 41, page 1, line 3.
residence to the extent recognized in accordance with §40-18-14;
Line 15. Enter the amount from line 12 of the Form NOL-F85.
gain or loss from the sale of assets not used in a trade or business
Line 16. Enter the sum of line 14 and line 15.
(including distributive shares of gains or losses from such assets
Line 17. Enter the sum of line 13 and line 16. If the amount on
held by a partnership or an Alabama S corporation); interest and
line 17 is zero or greater, the taxpayer does not have a net oper-
dividend income (including distributive shares of interest and divi-
ating loss for the tax year.
dend income received by a partnership or an Alabama S corpora-
Part III – Election to Forfeit Carryback Provision
tion); losses on Internal Revenue Code §1244 stock (in excess of
This part of the form is used to make the election provided for
the amount of ordinary loss allowed for federal income tax pur-
by §40-18-15.2 , allowing the taxpayer to forego carryback the net
poses) federal income tax refunds or tax paid; alimony received;
operating loss to the two prior tax years, and carry the net operat-
taxable pension and annuities; income or loss from a trust or es-
ing loss forward only.
tate; deductible contributions to IRA retirement plans; Keogh re-
Please Note: losses from Estates and Irrevocable trusts can-
tirement plans; employee benefit contributions paid by an
not be passed to beneficiary or owner see Code of Alabama 1975,
employer; penalties for early withdrawal of savings; alimony paid
810.3.25.11(f), 810.3.25.05(8)b.
ADVERTISEMENT
0 votes
Related Articles
Related forms
Form Nol-f85 - Computation Of Net Operating Loss Fiduciary Return (form 41) - Alabama Department Of Revenue - 2012
Financial
Form Nol-f85a - Application Of Net Operating Loss Carryback Or Carryforward - Fiduciary Return - 2007
Financial
Form Nol-f85a - Application Of Net Operating Loss Carryback Or Carryforward Fiduciary Return - 2009
Financial
Form Nol-f85a - Application Of Net Operating Loss Carryback Or Carryforward Fiduciary Return - 2008
Financial
Form Nol-f85a - Application Of Net Operating Loss Carryback Or Carryforward Fiduciary Return - 2016
Financial
Related Categories
Parent category: Financial