Wednesday

Preparing IRS Form 1045 Tentative Carryback Application or Carryback Claim Net Operation Loss (NOL)

Preparing Form 1045 to apply a tentative carry-back loss is ridiculously complicated for most people.  Even seasoned tax prepares have difficulties preparing this form. 

If after you filed an amendment to your tax return (Form 1040X) and the IRS sends you a notice requesting that you now file Form 1045 you should consider calling someone for help!  I filed one of these forms back in June for a client of mine and just received notice that it was approved, lowering the taxpayer's liability down from $8492 to $2900.





If you wanted to try to tackle the 1045 yourself here are the instructions:

Department of the Treasury
Internal Revenue Service 2010
Instructions for Form 1045
Application for Tentative Refund
Section references are to the Internal Definitions connection with gambling, the racing
Revenue Code unless otherwise noted. of animals, or the on-site viewing of
Eligible loss. For an individual, an such racing, and the portion of any
eligible loss is any loss of property real property (determined by square
What’s New arising from fire, storm, shipwreck, footage) that is dedicated to
other casualty, or theft. gambling, the racing of animals, or
Carryback of eligible small For a small business (as defined in the on-site viewing of such racing,
business credits. Eligible small section 172(b)(1)(F)(iii)) or a farming unless this portion is less than 100
business credits determined in your business (as defined in section square feet.
first tax year beginning in 2010 are 263A(e)(4)), an eligible loss is any Qualified GO Zone loss. For 2010, carried back to each of the 5 loss attributable to a federally a qualified GO Zone loss is the preceding tax years, beginning with declared disaster (as defined in smaller of: the earliest year. See Line section 165(h)(3)(C)(i)). 1. The excess of the NOL for the 1b–Unused General Business Credit An eligible loss does not include a year over the specified liability loss on page 2. farming loss, a qualified disaster loss, for the year to which a 10-year
a qualified GO Zone loss, or a carryback applies, or
General Instructions qualified disaster recovery assistance 2. The total of any special GO loss. Zone depreciation or amortization
Farming loss. A farming loss is the allowable for specified GO Zone
Purpose of Form smaller of: extension property for the tax year
Form 1045 is used by an individual, · The amount that would be the NOL such property is placed in service
estate, or trust to apply for a quick tax for the tax year if only income and (even if you elected not to claim the
refund resulting from: deductions attributable to farming special GO Zone depreciation
· The carryback of an NOL, businesses (as defined in section allowance for such property).
· The carryback of an unused 263A(e)(4)) were taken into account, For more information on the special
general business credit, or GO Zone depreciation allowance, and · The carryback of a net section · The NOL for the tax year. the definition of specified GO Zone
1256 contracts loss, or A farming loss does not include a extension property, see Publication
· An overpayment of tax due to a qualified disaster loss. 536, Net Operating Losses (NOLs)
claim of right adjustment under Qualified disaster loss. A qualified for Individuals, Estates, and Trusts.
section 1341(b)(1). disaster loss is the smaller of: Qualified disaster recovery
When carrying back an NOL 1. The sum of: assistance loss. For the definition
to an earlier tax year, an a. Any losses occurring in a of qualified disaster recovery
CAUTION alternative minimum tax disaster area (as defined in section assistance loss, see page 5 of Pub.
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(AMT) liability may be created for that 165(h)(3)(C)) and attributable to a 4492-B, Information for Affected
earlier year. This may be true even if federally declared disaster occurring Taxpayers in the Midwestern Disaster
there was no AMT liability when the before January 1, 2010, plus Areas.
tax return for that earlier year was b. Any qualified disaster expenses Specified liability loss. Generally,
filed. allowable under section 198A (even if a specified liability loss is a loss
Waiving the carryback period. You you did not elect to treat such arising from:
can elect to carry an NOL forward expenses as qualified disaster · Product liability, or
only, instead of first carrying it back. expenses), or · An act (or failure to act) that
To make this election for an NOL 2. The NOL for the tax year. occurred at least 3 years before the
incurred in your 2010 tax year, attach beginning of the loss year and
to your 2010 tax return filed on or Excluded losses. A qualified resulted in a liability under a federal
before the due date (including disaster loss does not include any or state law requiring:
extensions) a statement that you are losses from property used in 1. Reclamation of land, electing under section 172(b)(3) to connection with any private or 2. Dismantling of a drilling relinquish the entire carryback period commercial golf course, country club, platform, for any 2010 NOL. If you filed your massage parlor, hot tub facility, 3. Remediation of environmental return on time without making the suntan facility, or any store for which contamination, or election, you can still make the the principal business is the sale of 4. Payment under any workers election on an amended return filed alcoholic beverages for consumption compensation act. within 6 months of the due date of the off premises.
return (excluding extensions). Attach A qualified disaster loss also does Any loss from a liability arising
the election to the amended return, not include any losses from any from (1) through (4) above can be
and write “Filed pursuant to section gambling or animal racing property. taken into account as a specified
301.9100-2” on the election Gambling or animal racing property is liability loss only if you used an
statement. Once made, the election is any equipment, furniture, software, or accrual method of accounting
irrevocable. other property used directly in throughout the period in which the act
Cat. No. 13666W
(or failure to act) occurred. For Minimum Tax–Individuals; and Excessive Allowances
details, see section 172(f). related alternative tax net operating loss deduction calculations. Any amount applied, credited, or When To File · Any applicable election statement. refunded based on this application that the IRS later determines to be
You must file Form 1045 within 1 year Also attach to Form 1045 copies of excessive may be billed as if it were
after the end of the year in which an all forms or schedules for items due to a math or clerical error on the
NOL, unused credit, net section 1256 refigured in the carryback years, such return.
contracts loss, or claim of right as Form 3800; Form 6251; or Form
adjustment arose. 6781. Form 1040X or Other
Be sure to file your 2010 You must attach copies of all Amended Return
income tax return no later required forms listed above Individuals can get a refund by filing CAUTION than the date you file Form and complete all lines on
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CAUTION
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1045. Form 1040X, Amended U.S. Form 1045 that apply to you. Individual Income Tax Return, instead
If you carry back any portion of an Otherwise, your application may be of Form 1045. An estate or trust can
NOL or an unused general business disallowed. file an amended Form 1041, U.S.
credit to tax years before the 3 years Processing the Income Tax Return for Estates and preceding the 2010 tax year, you may Trusts. In most cases, you must file
need to use additional Forms 1045. Application an amended return no later than 3 Complete lines 1 through 9 and years after the due date of the return Schedule A on only one Form 1045. The IRS will process your application for the applicable tax year. Use this Form 1045 for the earliest within 90 days from the later of: preceding tax years. You must sign · The date you file the complete If you use Form 1040X or other this Form 1045, but do not need to application, or amended return, follow the sign the other Forms 1045. · The last day of the month that instructions for that return. Attach to includes the due date (including the amended return a copy of
Where To File extensions) for filing your 2010 Schedule A of Form 1045 showing income tax return (or, for a claim of the computation of the NOL and, if
File Form 1045 with the Internal right adjustment, the date of the applicable, a copy of Schedule B of
Revenue Service Center for the place overpayment under section Form 1045 showing the computation
where you live as shown in the 1341(b)(1)). of the NOL carryover. Complete a
instructions for your 2010 income tax separate Form 1040X or other
return. The processing of Form 1045 and amended return for each year for
the payment of the requested refund which you request an adjustment. Do not include Form 1045 in does not mean the IRS has accepted
the same envelope as your your application as correct. If the IRS The procedures for Form 1040X
CAUTION 2010 income tax return. and Form 1045 are different. The IRS
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later determines that the claimed
deductions or credits are due to an is not required to process your Form
What To Attach overstatement of the value of 1040X within 90 days. However, if we
property, negligence, disregard of do not process it within 6 months Attach copies of the following, if from the date you file it, you can file applicable, to Form 1045 for the year rules, or substantial understatement of income tax, you may have to pay suit in court. If the IRS disallows your of the loss or credit. claim on Form 1040X and you · If you are an individual, pages 1 penalties. Any additional tax also will generate interest compounded daily. disagree with that determination, you and 2 of your 2010 Form 1040 and must file suit no later than 2 years
Schedules A, D, and J (Form 1040), if The IRS may need to contact you after the date we disallow it.
applicable. or your authorized representative (for
· Any Form 4952, Investment example, your accountant or tax Additional Information Interest Expense Deduction, attached return preparer) for more information
to your 2010 income tax return. so we can process your application. If For more details on NOLs, see Pub.
· All Schedules K-1 you received you want to designate a 536.
from partnerships, S corporations, representative for us to contact,
estates, or trusts that contribute to the attach a copy of your authorization to
carryback. Form 1045. For this purpose, you can Specific Instructions
· Any application for extension of use Form 2848, Power of Attorney
time to file your 2010 income tax and Declaration of Representative. Address return.
· All Forms 8886, Reportable Disallowance of the P.O. box. Enter your box number
Transaction Disclosure Statement, only if your post office does not attached to your 2010 income tax Application deliver mail to your street address.
return. Your application is not treated as a Foreign address. Enter the · Forms 8302, Electronic Deposit of claim for credit or refund. It may be information in the following order:
Tax Refund of $1 Million or More. disallowed if it has material omissions City, province or state, and country. · All other forms and schedules from or math errors that are not corrected Follow the country’s practice for
which a carryback results, such as within the 90-day period. If the entering the postal code. Do not
Schedule C or F (Form 1040); Form application is disallowed in whole or abbreviate the country name.
3800, General Business Credit; Form in part, no suit challenging the
6478, Alcohol and Cellulosic Biofuel disallowance can be brought in any Line 1b—Unused
Fuels Credit (for years before 2008, court. But you can file a regular claim Credit for Alcohol Used as Fuel); for credit or refund before the General Business Credit
Form 6781, Gains and Losses From limitation period expires, as explained If you claim a tentative refund based
Section 1256 Contracts and later under Form 1040X or Other on the carryback of an unused
Straddles; or Form 6251, Alternative Amended Return. general business credit, attach a
-2- Instructions for Form 1045 (2010)
detailed computation showing how cannot exceed the net section 1256 Line 10—NOL Deduction
you figured the credit carryback and a contract gain in that year and cannot recomputation of the credit after you increase or create an NOL for that After Carryback
apply the carryback. An unused year. Reflect the carryback as a Use the following rules to figure the
eligible small business credit (ESBC) reduction to your adjusted gross tax years to which you must carry an
must be carried back 5 years. income in the “After carryback” NOL shown on Schedule A, line 25. If
Generally, an unused general column on line 11. Attach to Form an NOL is not fully absorbed in a year
business credit that is not an ESBC 1045 a copy of Form 6781 and to which it is carried, complete
must be carried back 1 year. Schedule D (Form 1040) for the year Schedule B to figure the amount to
However, the new hire retention of the net section 1256 contracts loss carry to the next carryback year.
credit (Form 5884- cannot be and an amended Form 6781 and an Note. You may need to use
carried back before 2010 and the amended Schedule D (Form 1040) additional Forms 1045 to carry back
credit for small employer health for each carryback year. For more an NOL. Complete lines 1 through 9
insurance premiums (Form 8941) details, see section 1212(c). and Schedule A on only one Form
cannot be carried back before 2010 1045. Use this Form 1045 for the
unless it is an ESBC. Line 9 earliest preceding tax years. You
For an ESBC, make the If an NOL or net section 1256 must sign this Form 1045 but do not
recomputation by including the contracts loss carryback eliminates or need to sign the other Forms 1045.
carryback first in line 9 of the 2005 reduces a prior year foreign tax General rule. You generally must
Form 6478, Credit for Alcohol Used credit, you cannot use Form 1045 to carry back the entire NOL to the 2nd
as a Fuel. Any such credit not used in carry the released foreign tax credits tax year before the loss year. Any
2005 must be carried to 2006 (the to earlier years. Also, if the released loss not used in the 2nd preceding
next earliest carryback year), and so foreign tax credits result in the year is then carried to the 1st
on, by including any remaining release of general business credits, preceding year. Any loss not applied
unused ESBC on the following forms. you cannot use Form 1045 to carry in the 2 preceding years can be
1. 2006 Form 6478, line 10. the released general business credits carried forward up to 20 years. The
2. 2007 Form 6478, line 10. to earlier years. Instead, you must file 2-year carryback period does not
3. 2008 Form 6478, line 14. Form 1040X or other amended return apply to the portion of an NOL
4. 2009 Form 6478, line 13. to claim refunds for those years. For attributable to an eligible loss; a
details, see Rev. Rul. 82-154, 1982-2 farming loss; a qualified disaster, GO For any general business credit other C.B. 394. Zone, or disaster recovery assistance than an ESBC, make the loss; or a specified liability loss. recomputation on the 2009 Form Lines 10 Through 3800. Eligible losses. To the extent the
27—Computation of NOL is an eligible loss (defined on ESBCs are the total of the general page 1), it is carried back to the 3rd
business credits (other than the new Decrease in Tax tax year before the loss. Any such
hire retention credit and the employer Use one pair of columns to enter loss not used in that year is carried to
housing credit) determined in 2010 amounts before and after carryback the 2nd and then the 1st preceding
for an eligible small business. An for each year to which the loss or year. Any such loss that is not applied
eligible small business is a credit is being carried. Start with the in the 3 preceding years can be
corporation the stock of which is not earliest carryback year. A net section carried forward up to 20 years.
publicly traded, a partnership, or a 1256 contracts loss can be carried Only the eligible loss portion of the sole proprietorship, if its average back 3 years. See the instructions for NOL can be carried back 3 years. annual gross receipts for the line 10 that begin on this page to
3-tax-year period before 2010 is not figure the tax years to which you can Example. You have a $20,000
more than $50,000,000. For carry an NOL. Use the remaining NOL of which only $5,000 is an
additional rules and details, see the pairs of columns for each consecutive eligible loss. The $5,000 eligible loss
Instructions for Form 3800. preceding tax year until the loss is is carried back 3 years, but the
Note. If you are carrying back an fully absorbed. Enter the ordinal remaining $15,000 loss is carried
ESBC, write “SBJA 2012” at the top number of years the loss is being back only 2 years, even if you had
of page 1 of Form 1045 for the carried back and the date the modified taxable income of more than
earliest preceding tax year. carryback year ends in the spaces $5,000 in the 3rd preceding year.
provided in the headings above line Farming losses. To the extent the
If you filed a joint return (or 10 for each pair of columns. NOL is a farming loss (defined on
separate return) for some but not all page 1), that part of the loss is of the tax years involved in figuring Example. Your tax year is the 2010 calendar year and you are carried back to the 5th tax year the unused credit carryback, special before the loss. Any such loss not rules apply to figuring the carryback. carrying an NOL back 2 years. You enter “2nd” and “12/31/08” in the left used in that year is carried to the 4th See the instructions for Form 3800. preceding year and then applied column heading in the spaces
Line 1c—Net Section provided. The column heading now consecutively forward through the 1st reads “2nd preceding tax year ended preceding year. Any such loss not
1256 Contracts Loss 12/31/08.” applied in the 5 preceding years can be carried forward up to 20 years.
An individual can elect to carry back a For each carryback year, enter in
net section 1256 contracts loss to the column labeled “Before Only the farming loss portion of the
each of the 3 tax years preceding the carryback” the amounts for the NOL can be carried back 5 years.
loss year. An estate or trust is not carryback year as shown on your Example. You operate a farming
eligible to make this election. To original or amended return. If the business and incur an NOL of
make the election, check box D at the amounts were previously adjusted by $50,000 for 2010. $25,000 of the
top of Form 6781. The amount which you or the IRS, enter the amounts NOL is attributable to income and
can be used in any prior tax year after adjustment. deductions of your farming business;
Instructions for Form 1045 (2010) -3-
$10,000 is attributable to a fire in your rule. If you filed your original return on · The special allowance for passive
personal residence (an eligible loss); time, you can make the election on activity losses from rental real estate
and the remaining $15,000 is an amended return filed within 6 activities,
attributable to your spouse’s work as months after the due date of the · Taxable social security benefits,
an employee. The $25,000 farming return (excluding extensions). Attach · IRA deductions,
loss is carried back 5 years; the the election to the amended return · The student loan interest
$10,000 eligible loss is carried back 3 and write “Filed pursuant to section deduction,
years; and the remaining $15,000 301.9100-2” on the election · The tuition and fees deduction,
loss is carried back 2 years. Any statement. Once made, the election is · Excludable savings bond interest,
unused portion of this NOL can be irrevocable. and
carried forward up to 20 years. Specified liability losses. To the · The exclusion of amounts received
You can make an election to figure extent an NOL is a specified liability under an employer’s adoption
the carryback period for a farming loss (defined on page 1), that part of assistance program.
loss without regard to the special the loss is carried back to the 10th
5-year carryback rule. To make this tax year before the loss. Any such Line 12—Deductions
election for 2010, attach to your 2010 loss not used in that year is carried to Individuals. Enter in the column income tax return filed by the due the 9th preceding year and then labeled “Before carryback” for each date (including extensions) a applied consecutively forward through applicable carryback year the amount statement that you are electing to the 1st preceding year. Any such loss shown (or as previously adjusted) on treat any 2010 farming losses without that is not applied in the 10 preceding Form 1040: regard to the special 5-year carryback years can be carried forward up to 20 · Line 40a for 2009, rule. If you filed your original return on years. · Line 40 for 2005 – 2008, time, you can make the election on
an amended return filed within 6 Only the specified liability loss · Line 39 for 2004,
months after the due date of the portion of the NOL can be carried · Line 37 for 2003,
return (excluding extensions). Attach back 10 years. · Line 38 for 2002, or
the election to the amended return You can make an election to figure · Line 36 for 2000 – 2001.
and write “Filed pursuant to section the carryback period for a specified If you filed Form 1040NR, enter 301.9100-2” on the election liability loss without regard to the the amount shown (or as previously statement. Once made, the election is special 10-year carryback rule. To adjusted) on: irrevocable. make this election for 2010, attach to · Line 37 for 2005 – 2009,
Qualified disaster, GO Zone, and your 2010 income tax return filed by · Line 36 for 2004,
disaster recovery assistance the due date (including extensions) a · Line 35 for 2003,
losses. To the extent the NOL is a statement that you are electing to · Line 36 for 2002, or qualified disaster, GO Zone, or treat any 2010 specified liability · Line 35 for 2000 – 2001. disaster recovery assistance loss losses without regard to the special
(defined on page 1), that part of the 10-year carryback rule. If you filed If you filed Form 1040A, enter the
loss is carried back to the 5th tax year your original return on time, you can amount shown (or as previously
before the loss. Any such loss not make the election on an amended adjusted) on:
used in that year is carried to the 4th return filed within 6 months after the · Line 24a for 2009,
preceding year and then applied due date of the return (excluding · Line 24 for 2002 – 2008, or
consecutively forward through the 1st extensions). Attach the election to the · Line 22 for 2000 – 2001.
preceding year. Any such loss not amended return and write “Filed
applied in the 5 preceding years can pursuant to section 301.9100-2” on If you filed Form 1040EZ and
be carried forward up to 20 years. the election statement. Once made, checked any box on Form 1040EZ,
Only the qualified disaster, GO the election is irrevocable. line 5 (the “Yes” box on line 5 for Zone, or disaster recovery assistance 2000 – 2004), enter the amount Special rules. Special rules apply if shown (or as previously adjusted) on loss portions of the NOL can be you filed a joint return (or a separate line E (line D for 2005) of the carried back 5 years. return) for some but not all of the tax worksheet on the back of Form
Example. You have a $40,000 years involved in figuring an NOL 1040EZ (for 2009, Worksheet for Line
NOL of which $15,000 is a qualified carryback. For details, see Pub. 536. 5–Dependents who checked one or
disaster loss. The $15,000 qualified Attach a computation showing how both boxes). If you did not check any
disaster loss is carried back 5 years, you figured the carryback. box (or you checked the “No” box for
but the remaining $25,000 loss is 2000 – 2004), enter: carried back only 2 years. Any Line 11—Adjusted · $5,700 for 2009 ($11,400 if
unused portion of this NOL can be Gross Income married), carried forward up to 20 years. · $5,450 for 2008 ($10,900 if
You can make an election to figure Enter in the column labeled “Before married), the carryback period for a qualified carryback” your adjusted gross · $5,350 for 2007 ($10,700 if disaster, GO Zone, or disaster income (AGI) for the carryback year married), recovery assistance loss without as shown on your original or · $5,150 for 2006 ($10,300 if regard to the special 5-year carryback amended return. married),
rule. To make this election for 2010, Enter in the column labeled “After · $5,000 for 2005 ($10,000 if
attach to your 2010 income tax return carryback” your AGI refigured after married),
filed by the due date (including you apply the NOL or net section · $4,850 for 2004 ($9,700 if married),
extensions) a statement that you are 1256 contracts loss carryback and · $4,750 for 2003 ($9,500 if married),
electing to treat any 2010 qualified after you refigure any items of income · $4,700 for 2002 ($7,850 if married),
disaster, GO Zone, or disaster and deductions that are based on or · $4,550 for 2001 ($7,600 if married),
recovery assistance losses without limited to a percentage of your AGI. or
regard to the special 5-year carryback Amounts to refigure include: · $4,400 for 2000 ($7,350 if married).
-4- Instructions for Form 1045 (2010)
If you used TeleFile for your If you filed Form 1040EZ and Line 17—Alternative
original return and someone else checked the “You” box on Form could claim you as a dependent on 1040EZ, line 5 (the “Yes” box on line Minimum Tax
their return, see Form 1040EZ for the 5 for 2000 – 2004), enter zero (or the The carryback of an NOL or net
year in question and complete the amount from line F (line E for 2005) section 1256 contracts loss may
worksheet on the back of that form of the 1040EZ worksheet if married). affect or cause you to owe alternative
(for 2009, Worksheet for Line If you did not check any box (or you minimum tax. Individuals use Form
5–Dependents who checked one or checked the “No” box for 2000 – 6251 to figure this tax. Estates and
both boxes). Next, enter the amount 2004), enter: trusts use Schedule I (Form 1041).
from line E of that worksheet (line D · $3,650 for 2009 ($7,300 if married), The 90% limit on the alternative for 2005) on Form 1045, line 12, in · $3,500 for 2008 ($7,000 if married), tax net operating loss deduction the column labeled “Before · $3,400 for 2007 ($6,800 if married), (ATNOLD) does not apply to the carryback” for the applicable year. If · $3,300 for 2006 ($6,600 if married), portion of an ATNOLD attributable to no one could claim you as a · $3,200 for 2005 ($6,400 if married), qualified disaster losses, qualified GO dependent, enter the amount listed · $3,100 for 2004 ($6,200 if married), Zone losses, or qualified disaster above for that year. · $3,050 for 2003 ($6,100 if married), recovery assistance losses. Instead, After carryback. If you itemized · $3,000 for 2002 ($6,000 if married), the ATNOLD for the tax year is deductions in the carryback year, · $2,900 for 2001 ($5,800 if married), limited to the sum of: enter in the column labeled “After or · $2,800 for 2000 ($5,600 if married). 1. The smaller of: carryback” the total of your a. The sum of the ATNOL
deductions after refiguring any that If you used TeleFile for your carrybacks and carryforwards to the
are based on, or limited to a original return and someone else tax year attributable to NOLs other
percentage of, your adjusted gross could claim you as a dependent on than qualified disaster losses,
income. To refigure your deductions, their return, enter zero if you were qualified GO Zone losses, or qualified
use your refigured adjusted gross single. If you were married, see Form disaster recovery assistance losses,
income (Form 1045, line 11, using the 1040EZ for the year in question and or
“After carryback” column). Amounts complete the worksheet on the back b. 90% of AMTI for the tax year
you may have to refigure include: of that form. Next, enter the amount (figured without regard to the · Medical expenses, from line F of that worksheet on Form ATNOLD and any domestic · Mortgage insurance premiums, 1045, line 14, in the column labeled production activities deduction), plus · Personal casualty and theft losses, “Before carryback” for the applicable 2. The smaller of: · Miscellaneous deductions subject year. If no one could claim you as a a. The sum of the ATNOL to the 2% limit, and dependent, enter the amount listed carrybacks to the tax year attributable · Itemized deductions subject to the above for that year. to qualified disaster losses, qualified overall limit of section 68. After carryback. If your GO Zone losses, or qualified disaster
Do not refigure your charitable deduction for personal exemptions in recovery assistance losses, or
contributions deduction. the carryback year was limited based b. AMTI for the tax year (figured
CAUTION on your adjusted gross income, enter without regard to the ATNOLD and
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in the column labeled “After any domestic production activities If you have an NOL, see Pub. 536 carryback” the deduction for personal deduction) reduced by the amount for more information and examples. exemptions refigured using your determined under (1), above.
If you did not itemize deductions in refigured adjusted gross income
the carryback year, enter your (Form 1045, line 11, using the “After Line 19—General standard deduction for that year. carryback” column).
Estates and trusts. Enter in the Business Credit Line 14—Exemptions columns labeled “Before carryback” Enter in the column labeled “After
Individuals. Enter in the column and “After carryback” for each carryback” for each affected
labeled “Before carryback” for each applicable carryback year the amount carryback year the total of the
applicable carryback year, the shown (or as previously adjusted) on recomputed general business credits,
amount shown (or as previously Form 1041, line 20. using Form 3800 (or using Forms
adjusted) on Form 1040: 3800, 5884, 6478, 8586, 8835
· Line 42 for 2005 – 2009, Line 16—Income Tax (Section , 8844, 8846, or 8884, if
· Line 41 for 2004, Use your refigured taxable income applicable, to recompute the general
· Line 39 for 2003, (Form 1045, line 15, using the “After business credits for years before
· Line 40 for 2002, or carryback” column) to refigure your 2008). · Line 38 for 2000 – 2001. tax for each carryback year. Include If an NOL or net section 1256
If you filed Form 1040NR, enter any tax from Form 4970, Tax on contracts loss carryback eliminates or
the amount shown (or as previously Accumulation Distribution of Trusts, reduces a general business credit in
adjusted) on: and Form 4972, Tax on Lump-Sum an earlier year, you may be able to
· Line 39 for 2005 – 2009, Distributions. Attach any schedule carry back the released credit 1 year.
· Line 38 for 2004, used to figure your tax or an See section 39 and the instructions
· Line 37 for 2003, explanation of the method used to for Form 3800 for more details on
· Line 38 for 2002, or figure the tax and, if necessary, a general business credit carrybacks.
· Line 37 for 2000 – 2001. detailed computation.
If you filed Form 1040A, enter the For example, write “Tax Line 20—Other Credits
amount shown (or as previously Computation Worksheet–2008” if this See your tax return for the carryback
adjusted) on: is the method used for that year. You year for any additional credits such as
· Line 26 for 2002 – 2009, or do not need to attach a detailed the earned income credit, credit for
· Line 24 for 2000 – 2001. computation of the tax in this case. child and dependent care expenses,
Instructions for Form 1045 (2010) -5-
child tax credit, education credits, with a trade or business. They Do not enter business income on
foreign tax credit, retirement savings include: line 7. This is income from a trade or
contributions credit, etc., that will · IRA deductions, business and includes:
apply in that year. If you make an · Health savings account deduction, · Salaries and wages,
entry on this line, identify the credit(s) · Archer MSA deduction, · Rental income,
claimed. · Deductions for payments on behalf · Gain on the sale or exchange of
After carryback. Refigure any of a self-employed individual to a business real estate or depreciable
credits included on this line that are SEP, SIMPLE, or qualified plan, property, and based on or limited by your tax · Alimony paid, · Your share of business income liability. Use your refigured tax liability · Most itemized deductions (except from a partnership or an S
to refigure your credits for each for state income tax on business corporation.
carryback year. profits, casualty and theft losses, and For more details on business and any employee business expenses), nonbusiness income and deductions, Line 23— and see Pub. 536. · The standard deduction (minus the
Self-Employment Tax amount of any net disaster loss from Line 17—Section 1202
Do not adjust self-employment tax Schedule L (Form 1040A or 1040), Exclusion because of any carryback. line 6). Enter as a positive number any gain
Do not include on line 6 the excluded under section 1202 on the
Line 24—Other Taxes deduction for personal exemptions for sale or exchange of qualified small
See your tax return for the carryback you, your spouse, or your business stock.
year for any other taxes not dependents.
mentioned above, such as recapture Do not include on line 6 any Schedule B—NOL
taxes, tax on an IRA, etc., that will business deductions. These are Carryover apply in that year. If you make an deductions that are connected with a
entry on this line, identify the taxes trade or business. They include: Complete and file this schedule to
that apply. · State income tax on business determine the NOL deduction for
profits, each carryback year and the amount
Line 28—Overpayment · Educator expenses, to be carried forward, if not fully
of Tax Under Section · Moving expenses, absorbed. Make the same entries in · The deduction for one-half of each column heading as on page 1 of
1341(b)(1) self-employment tax, Form 1045 (see the instructions for
If you apply for a tentative refund · Domestic production activities Lines 10 Through 27 on page 3).
based on an overpayment of tax deduction, In most cases, if an NOL is more under section 1341(b)(1), enter it on · Rental losses, than the modified taxable income for this line. Also, attach a computation · Loss on the sale or exchange of the earliest year to which it is carried,
showing the information required by business real estate or depreciable you must file Schedule B to figure the
Regulations section 5.6411-1(d). property, amount of the NOL to be carried to · Your share of a business loss from the next tax year. The amount of the
Signature a partnership or an S corporation, carryback is in most cases the · Ordinary loss on the sale or excess, if any, of the NOL carryback
Individuals. Sign and date Form exchange of section 1244 (small over the modified taxable income for
1045. If Form 1045 is filed jointly, business) stock, that earlier year. Modified taxable
both spouses must sign. · Ordinary loss on the sale or income is the amount figured on line
Estates. All executors or exchange of stock in a small business 9 of Schedule B.
administrators must sign and date investment company operating under
Form 1045. the Small Business Investment Act of If you carry two or more NOLs
1958, to a tax year, figure your Trusts. The fiduciary or an · Loss from the sale of accounts CAUTION modified taxable income by
!
authorized representative must sign receivable if such accounts arose deducting the NOLs in the order in
and date Form 1045. under the accrual method of which they were incurred. First,
Schedule A—NOL accounting, deduct the NOL from the earliest · If you itemized your deductions, year, then the NOL from the next
Complete and file this schedule to casualty and theft losses (even if they earliest year, etc. After you deduct
determine the amount of the NOL that involve nonbusiness property) and each NOL, there will be a new,
is available for carryback or employee business expenses (such smaller, modified taxable income to
carryforward. as union dues, uniforms, tools, and compare to any remaining NOL.
educational expenses), and
Line 2—Nonbusiness Capital · Any net disaster loss from Line 2
Losses Schedule L (Form 1040A or 1040), Do not take into account on this line
Do not include on this line any section line 6, you included in your standard any NOL carryback from 2010 or
1202 exclusion amounts (even if deduction. later. However, do take into account
entered as losses on Schedule D Line 7—Nonbusiness NOLs that occurred in tax years (Form 1040) or Schedule D (Form before 2010 and are otherwise 1041)). Income Other Than Capital allowable as carrybacks or
Gains carryforwards.
Line 6—Nonbusiness Enter income that is not from a trade Note. If your taxable income is Deductions or business. Examples are ordinary shown as zero on your tax return (or
Enter as a positive number dividends, annuities, and interest on as previously adjusted) for any
deductions that are not connected investments. carryback year, refigure it without
-6- Instructions for Form 1045 (2010)
limiting the result to zero, and enter it · Taxable social security benefits, · You did not itemize deductions, or
on line 2 as a negative number. · IRA deductions, · The amounts on Schedule B, lines
· Excludable savings bond interest, 3 through 5, are zero. Line 3—Net Capital Loss · The exclusion of amounts received Otherwise, complete lines 11 through
Deduction under an employer’s adoption 38 and enter on line 7 the amount
Individuals. assistance program, from line 38 (or, if applicable, line 14 Enter as a positive · The student loan interest of the worksheet on page 9). number the amount, if any, shown (or deduction, and
as previously adjusted) on Schedule · The tuition and fees deduction. Estates and trusts. Recompute the
D (Form 1040), line 21 (line 18 for miscellaneous itemized deductions
2000 – 2003). For purposes of figuring the shown (or as previously adjusted) on
Estates and trusts. Enter as a adjustment to each of these items, Form 1041, line 15b, and any positive number the amount, if any, your adjusted gross income is casualty or theft losses shown (or as shown (or as previously adjusted) on increased by the total of the amounts previously adjusted) on Form 4684, Schedule D (Form 1041), line 16 (line on line 3 and line 4. Do not take into Casualties and Thefts, line 18 (line 20 17 for 2000 – 2003). account any NOL carryback from for 2005 and 2006; line 23 for 2008; 2010 or later. line 21 for 2009) by substituting Line 4—Section 1202 In most cases, figure the modified adjusted gross income (see
Exclusion adjustment to each item of income or below) for the adjusted gross income
Enter as a positive number any gain deduction in the order listed above of the estate or trust. Subtract the
excluded under section 1202 on the and, when figuring the adjustment to recomputed deductions and losses
sale or exchange of qualified small each subsequent item, increase or from the deductions and losses
business stock. decrease adjusted gross income by previously shown, and enter the
the total adjustments you figured for difference on line 7.
Line 5—Domestic the previous items. However, a
Production Activities special rule applies if you received Modified adjusted gross income social security benefits and deducted for estates and trusts. For Deduction IRA contributions. Use the purposes of figuring miscellaneous
Enter as a positive number the worksheets in Pub. 590, Individual itemized deductions subject to the 2%
amount of any domestic production Retirement Arrangements (IRAs), to limit, figure modified adjusted gross
activities deduction claimed on your refigure your taxable social security income by adding the following
return. benefits and IRA deductions under amounts to the adjusted gross
the special rule. income previously used to figure Line 6—Adjustments to these deductions.
Adjusted Gross Income Enter on line 6 the total · The total of the amounts from lines
If you entered an amount on line 3 or adjustments made to the listed items. 3 through 6 of Form 1045, line 4, you must refigure certain Attach a computation showing how Schedule B. income and deductions based on you figured the adjustments. · The exemption amount shown (or
adjusted gross income. These Line 7—Adjustment to as previously adjusted) on Form
include: Itemized Deductions 1041, line 20. · The special allowance for passive · The income distribution deduction
activity losses from rental real estate Individuals. Skip this line if, for the shown (or as previously adjusted) on
activities, applicable carryback year: Form 1041, line 18.
Mortgage Insurance Premiums Deduction Worksheet—Line 20 Keep for Your Records
Before you begin: u See the instructions for line 20 on page 8 to see if you must use this worksheet to refigure your
deduction.
1. Enter the total premiums you paid in the carryback year for mortgage insurance for a contract issued
after December 31, 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2. Enter the amount from Form 1045, Schedule B, line 13 . . . . . . . . . . . . . . . . . . . . 2.
3. Enter $100,000 ($50,000 if married filing separately) . . . . . . . . . . . . . . . . . . . . . 3.
4. Is the amount on line 2 more than the amount on line 3?
M No. Your deduction is not limited. Enter the amount from line 19 on line 20 of
Form 1045, Schedule B, and enter -0- on line 21. Do not complete the
rest of this worksheet.
M Yes. Subtract line 3 from line 2. If the result is not a multiple of $1,000 ($500 if
married filing separately), increase it to the next multiple of $1,000 ($500
if married filing separately). For example, increase $425 to $1,000,
increase $2,025 to $3,000; or if married filing separately, increase $425 to
$500, increase $2,025 to $2,500, etc. . . . . . . . . . . . . . . . . . . . . . . . . . 4.
5. Divide line 4 by $10,000 ($5,000 if married filing separately). Enter the result as a decimal. If the result is
1.0 or more, enter 1.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
6. Multiply line 1 by line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.
7. Refigured mortgage insurance premiums deduction. Subtract line 6 from line 1. Enter the result here
and on Form 1045, Schedule B, line 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.
Instructions for Form 1045 (2010) -7-
For purposes of figuring casualty M Yes. Your deduction is limited. income, figure your adjusted gross
or theft losses, figure modified Refigure your deduction using the income as follows.
adjusted gross income by adding the Mortgage Insurance Premiums 1. Figure the adjustment to each
total of the amounts from lines 3 Deduction Worksheet on page 7. item of income or deduction in the
through 6 of Form 1045, Schedule B, M No. Your deduction is not same manner as explained in the
to the adjusted gross income limited. Enter the amount from line 19 instructions for line 6 of Schedule B
previously used to figure these on line 20 and enter -0- on line 21. on page 7, except do not take into
losses. account any NOL carrybacks when
Line 10—NOL Carryover Line 26—Refigured figuring adjusted gross income. Charitable Contributions Attach a computation showing how Generally, subtract line 9 from line 1. you figured the adjustments. If zero or less, enter -0-. After Refigure your charitable contributions using line 24 as your adjusted gross 2. Add lines 3, 4, 5, 11, and 23 of completing all applicable columns, Schedule B to the total adjustments carry forward to 2011 the amount, if income unless, for any preceding tax year: you figured in (1) above. Use the any, on line 10 of the column for the · result as your adjusted gross income 1st preceding tax year. You entered an amount other than zero on line 23, and to refigure charitable contributions.
Line 20—Refigured · You had any items of income or For NOL carryover purposes, you
Mortgage Insurance deductions based on adjusted gross must reduce any charitable
Premiums income which are listed in the contributions carryover to the extent instructions for line 6 of Schedule B that the NOL carryover on line 10 is Is your modified adjusted gross on page 7. increased by any adjustment to income from Form 1045, Schedule B,
line 13, more than $100,000 ($50,000 If you cannot use the amount from charitable contributions.
if married filing separately)? line 24 as your adjusted gross
-8- Instructions for Form 1045 (2010)
Add the amounts from Form 1045, Schedule
B, lines 17, 20, 26, 31, and 36; plus the
amounts from Schedule A (Form 1040), lines
9, 14, and 27 (lines 9, 10, 11, 12, 14, and 28
for 2007, 2008, and 2009), or the amounts
from Schedule A (Form 1040NR), lines 3 and
16 (or as previously adjusted)
Add the amounts from Form 1045, Schedule
B, lines 17 and 31; plus the amounts from
Schedule A (Form 1040), line 13 (line 14 for
2007, 2008, and 2009), line 15b for 2005, and
any gambling and casualty or theft losses
included on line 27 (line 28 for 2007, 2008, and
2009), or the amounts from Schedule A (Form
1040NR), line 4b for 2005 and any casualty or
theft losses included on line 16 (or as
previously adjusted). Also include in the total
any amount included on Form 1045, Schedule
B, line 26, that you elected to treat as qualified
contributions for relief efforts in a Midwestern
disaster area
Subtract line 2 from line 1. If the result is zero
or less, stop here; combine the amounts from
Form 1045, Schedule B, lines 18, 21, 27, 32,
and 37, and enter the result on line 38 and line
7 of Form 1045, Schedule B
Multiply line 3 by 80% (.80)
Enter the amount from Form 1045, Schedule
B, line 22
Enter:
Subtract line 6 from line 5
Multiply line 7 by 3% (.03)
Enter the smaller of line 4 or line 8
Enter the amount for your carryback year as
follows:
Total itemized deductions from Schedule A
(Form 1040), line 28 (line 29 for 2007, 2008,
and 2009), or Schedule A (Form 1040NR), line
17 (or as previously adjusted)
Subtract line 13 from line 12. Enter the
difference here and on line 7 of Form 1045,
Schedule B
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
13.
14.
Itemized Deductions Limitation Worksheet—See the instructions for line 38 on page 10 (keep for your records)
● $150,500 for 2006 ($75,250 if married
filing separately);
Enter applicable carryback year
● $128,950 for 2000 ($64,475 if married
filing separately);
● $132,950 for 2001 ($66,475 if married
filing separately);
● $137,300 for 2002 ($68,650 if married
filing separately);
● $139,500 for 2003 ($69,750 if married
filing separately);
● $142,700 for 2004 ($71,350 if married
filing separately);
● $145,950 for 2005 ($72,975 if married
filing separately);
● For 2008 and 2009, divide line 9 by 1.5;
● For 2006 and 2007, divide line 9 by 3.0; or
11. Subtract line 10 from line 9
12.

● $156,400 for 2007 ($78,200 if married
filing separately);
● For all other carryback years, enter -0-.
Subtract line 11 from line 1
● $159,950 for 2008 ($79,975 if married
filing separately);
● $166,800 for 2009 ($83,400 if married
filing separately).
Instructions for Form 1045 (2010) -9-
Line 38 process this application. Providing federal agencies for the purposes of
Complete the worksheet on page 9 if false or fraudulent information may determining entitlement for benefits or line 22, Schedule B, is more than: subject you to penalties. the eligibility for and the repayment of · $128,950 for 2000 ($64,475 if You are not required to provide the loans. We may also disclose this married filing separately), information requested on a form that information to other countries under a · $132,950 for 2001 ($66,475 if is subject to the Paperwork Reduction tax treaty, to federal and state married filing separately), Act unless the form displays a valid agencies to enforce federal nontax · $137,300 for 2002 ($68,650 if OMB control number. Books or criminal laws, or to federal law married filing separately), records relating to a form or its enforcement and intelligence · $139,500 for 2003 ($69,750 if instructions must be retained as long agencies to combat terrorism.
married filing separately), as their contents may become The time needed to complete and
· $142,700 for 2004 ($71,350 if material in the administration of any file this form will vary depending on
married filing separately), Internal Revenue law. individual circumstances. The
· $145,950 for 2005 ($72,975 if Generally, tax returns and return estimated burden for individual
married filing separately), information are confidential, as stated taxpayers filing this form is approved
· $150,500 for 2006 ($75,250 if in section 6103. However, section under OMB control number
married filing separately), 6103 allows or requires the Internal 1545–0074 and is included in the
· $156,400 for 2007 ($78,200 if Revenue Service to disclose or give estimates shown in the instructions
married filing separately), the information shown on your tax for their individual income tax return.
· $159,950 for 2008 ($79,975 if return to others as described in the The estimated burden for all other
married filing separately), or Internal Revenue Code. For example, taxpayers who file this form is shown
· $166,800 for 2009 ($83,400 if we may disclose your tax information below.
married filing separately). to the Department of Justice, to
Only complete a column for each enforce the tax laws, both civil and Recordkeeping . . . . . . . 9 hr., 18 min. year that meets the above criminal, and to cities, states, the Learning about the law District of Columbia, U.S. or the form . . . . . . . . . . 9 hr., 7 min. requirements. Preparing the form . . . . 9 hr., 57 min. commonwealths or possessions, and Disclosure, Privacy Act, and certain foreign governments to carry Copying, assembling, Paperwork Reduction Act Notice. out their tax laws. We may disclose and sending the form to We ask for the information on this your tax information to the the IRS . . . . . . . . . . . . . 1 hr., 3 min.
form to carry out the Internal Department of Treasury and If you have comments concerning
Revenue laws of the United States. contractors for tax administration the accuracy of these time estimates
You may use Form 1045 to apply purposes; and to other persons as or suggestions for making this form
under section 6411 for a quick refund necessary to obtain information which simpler, we would be happy to hear
of tax for a prior year affected by we cannot get in any other way in from you. You can write to the
certain carrybacks. If you file Form order to determine the amount of or Internal Revenue Service, Tax
1045, you are required to give us the to collect the tax you owe. We may Products Coordinating Committee,
requested information. We need it to disclose your tax information to the SE:W:CAR:MP:T:T:SP, 1111
ensure that you are complying with Comptroller General of the United Constitution Ave., NW, IR-6526,
these laws and to allow us to figure States to permit the Comptroller Washington, DC 20224.
and collect the right amount of tax. General to review the Internal Do not send the form to this Section 6109 requires that you Revenue Service. We may disclose address. Instead, see Where To File disclose your taxpayer identification your tax information to Committees of on page 2. number (SSN, ITIN, or EIN). If you do Congress; federal, state, and local
not provide the information child support agencies; and to other
requested, we may be unable to
-10- Instructions for Form 1045 (2010)