Table of Contents
- Address
- Line 1b—Unused General Business Credit
- Line 1c—Net Section 1256 Contracts Loss
- Line 9
- Lines 10 Through 27—Computation of Decrease in Tax
- Line 10—NOL Deduction After Carryback
- Line 11—Adjusted Gross Income
- Line 12—Deductions
- Line 14—Exemptions
- Line 16—Income Tax
- Line 17—Alternative Minimum Tax
- Line 19—General Business Credit
- Line 20—Other Credits
- Line 23—Self-Employment Tax
- Line 24—Other Taxes
- Line 28—Overpayment of Tax Under Section 1341(b)(1)
- Signature
If you claim a tentative refund based on the carryback of an unused general business credit, attach a detailed computation showing how you figured the credit carryback and a recomputation of the credit after you apply the carryback. Generally, an unused general business credit can be carried back 1 year. Make the recomputation on the 2007 Form 3800 (or Form 8844, Form 5884, Form 6478, Form 8835 (Section B), or Form 8846, if applicable).
If you filed a joint return (or separate return) for some but not all of the tax years involved in figuring the unused credit carryback, special rules apply to figuring the carryback. See the instructions for Form 3800.
An individual can elect to carry back a net section 1256 contracts loss to each of the 3 tax years preceding the loss year. An estate or trust is not eligible to make this election. To make the election, check box D at the top of Form 6781. The amount which can be used in any prior tax year cannot exceed the net section 1256 contract gain in that year and cannot increase or create an NOL for that year. Reflect the carryback as a reduction to your adjusted gross income in the “After carryback” column on line 11. Attach to Form 1045 a copy of Form 6781 and Schedule D (Form 1040) for the year of the net section 1256 contracts loss and an amended Form 6781 and an amended Schedule D (Form 1040) for each carryback year. For more details, see section 1212(c).
If an NOL or net section 1256 contracts loss carryback eliminates or reduces a prior year foreign tax credit, you cannot use Form 1045 to carry the released foreign tax credits to earlier years. Also, if the released foreign tax credits result in the release of general business credits, you cannot use Form 1045 to carry the released general business credits to earlier years. Instead, you must file Form 1040X or other amended return to claim refunds for those years. For details, see Rev. Rul. 82-154, 1982-2 C.B. 394.
Use one pair of columns to enter amounts before and after carryback for each year to which the loss is being carried. Start with the earliest carryback year. A net section 1256 contracts loss can be carried back 3 years. See the instructions for line 10 that begin on this page to figure the tax years to which you can carry an NOL. Use the remaining pairs of columns for each consecutive preceding tax year until the loss is fully absorbed. Enter the ordinal number of years the loss is being carried back and the date the carryback year ends in the spaces provided in the headings above line 10 for each pair of columns.
Example.
Your tax year is the 2008 calendar year and you are carrying an NOL back 2 years. You enter “2nd” and “12/31/06” in the left column heading in the spaces provided. The column heading now reads “2nd preceding tax year ended 12/31/06.”
For each carryback year, enter in the column labeled “Before carryback” the amounts for the carryback year as shown on your original or amended return. If the amounts were previously adjusted by you or the IRS, enter the amounts after adjustment.
Use the following rules to figure the tax years to which you must carry an NOL shown on Schedule A, line 25. If an NOL is not fully absorbed in a year to which it is carried, complete Schedule B to figure the amount to carry to the next carryback year.
Example.
You operate a farming business and incur an NOL of $50,000 for 2008. $25,000 of the NOL is attributable to income and deductions of your farming business; $10,000 is attributable to a fire in your personal residence (an eligible loss); and the remaining $15,000 is attributable to your spouse's work as an employee. The $25,000 farming loss is carried back 5 years; the $10,000 eligible loss is carried back 3 years; and the remaining $15,000 loss is carried back 2 years. Any unused portion of this NOL can be carried forward up to 20 years.
Example.
You have a $40,000 NOL of which $15,000 is a qualified disaster loss. The $15,000 qualified disaster loss is carried back 5 years, but the remaining $25,000 loss is carried back only 2 years. Any unused portion of this NOL can be carried forward up to 20 years.
If you already filed a tax return for your 2008 NOL tax year, and you now want to elect to use a 3, 4, or 5-year carryback period for an eligible small business loss, you must file Form 1045 or an amended return (using Form 1040X or Form 1041) for the earliest tax year to which you are carrying back your 2008 NOL. The Form 1045 or amended return must be filed by the later of:
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6 months after the due date (excluding extensions) for filing the tax return for your 2008 NOL tax year, or
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April 17, 2009.
Enter “2008 NOL Carryback Election Pursuant to Rev. Proc. 2009-19” across the top of the Form 1045 or amended return. If you already filed Form 1045 or an amended return to claim your 2008 NOL carryback, also enter “Amended NOL Carryback Election Pursuant to Rev. Proc. 2009-19” across the top of the amended Form 1045 or amended return. If you choose to file an amended return using Form 1040X or Form 1041, see Form 1040X or Other Amended Return on page 3.
Enter in the column labeled “Before carryback” your adjusted gross income (AGI) for the carryback year as shown on your original or amended return.
Enter in the column labeled “After carryback” your adjusted gross income refigured after you apply the NOL or net 1256 contracts loss carryback and after you refigure any items of income and deductions that are based on or limited to a percentage of your adjusted gross income. Amounts to refigure include:
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The special allowance for passive activity losses from rental real estate activities,
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Taxable social security benefits,
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IRA deductions,
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The student loan interest deduction,
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The tuition and fees deduction,
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Excludable savings bond interest, and
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The exclusion of amounts received under an employer's adoption assistance program.
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Line 40 for 2005–2007,
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Line 39 for 2004,
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Line 37 for 2003,
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Line 38 for 2002, or
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Line 36 for 1998–2001.
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Line 37 for 2005–2007,
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Line 36 for 2004,
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Line 35 for 2003,
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Line 36 for 2002, or
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Line 35 for 1998–2001.
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Line 24 for 2002–2007,
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Line 22 for 2000–2001, or
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Line 21 for 1998–1999.
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$5,350 for 2007 ($10,700 if married),
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$5,150 for 2006 ($10,300 if married),
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$5,000 for 2005 ($10,000 if married),
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$4,850 for 2004 ($9,700 if married),
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$4,750 for 2003 ($9,500 if married),
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$4,700 for 2002 ($7,850 if married),
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$4,550 for 2001 ($7,600 if married),
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$4,400 for 2000 ($7,350 if married),
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$4,300 for 1999 ($7,200 if married), or
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$4,250 for 1998 ($7,100 if married).
If you itemized deductions in the carryback year, enter in the column labeled “After carryback” the total of your deductions after refiguring any that are based on, or limited to a percentage of, your adjusted gross income. To refigure your deductions, use your refigured adjusted gross income (Form 1045, line 11, using the “After carryback” column). Amounts you may have to refigure include:
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Medical expenses,
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Qualified mortgage insurance premiums,
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Personal casualty and theft losses,
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Miscellaneous deductions subject to the 2% limit, and
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Itemized deductions subject to the overall limit of section 68.
Do not refigure your charitable contributions deduction.
If you have an NOL, see Pub. 536 for more information and examples.
If you did not itemize deductions in the carryback year, enter your standard deduction for that year.
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Line 42 for 2005–2007,
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Line 41 for 2004,
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Line 39 for 2003,
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Line 40 for 2002, or
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Line 38 for 1998–2001.
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Line 39 for 2005–2007,
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Line 38 for 2004,
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Line 37 for 2003,
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Line 38 for 2002, or
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Line 37 for 1998–2001.
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Line 26 for 2002–2007,
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Line 24 for 2000–2001, or
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Line 23 for 1998–1999.
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$3,400 for 2007 ($6,800 if married),
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$3,300 for 2006 ($6,600 if married),
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$3,200 for 2005 ($6,400 if married),
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$3,100 for 2004 ($6,200 if married),
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$3,050 for 2003 ($6,100 if married),
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$3,000 for 2002 ($6,000 if married),
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$2,900 for 2001 ($5,800 if married),
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$2,800 for 2000 ($5,600 if married),
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$2,750 for 1999 ($5,500 if married), or
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$2,700 for 1998 ($5,400 if married).
If your deduction for personal exemptions in the carryback year was limited based on your adjusted gross income, enter in the column labeled “After carryback” the deduction for personal exemptions refigured using your refigured adjusted gross income (Form 1045, line 11, using the “After carryback” column).
Use your refigured taxable income (Form 1045, line 15, using the “After carryback” column) to refigure your tax for each carryback year. Include any tax from Form 4970, Tax on Accumulation Distribution of Trusts, and Form 4972, Tax on Lump-Sum Distributions. Attach any schedule used to figure your tax or an explanation of the method used to figure the tax and, if necessary, a detailed computation.
For example, write “Tax Computation Worksheet–2006” if this is the method used for that year. You do not need to attach a detailed computation of the tax in this case.
The carryback of an NOL or net section 1256 contracts loss may affect or cause you to owe alternative minimum tax. Individuals use Form 6251 to figure this tax. Estates and trusts use Schedule I (Form 1041).
The 90% limit on the alternative tax net operating loss deduction (ATNOLD) does not apply to the portion of an ATNOLD attributable to qualified disaster losses, qualified GO Zone losses, qualified recovery assistance losses, or qualified disaster recovery assistance losses. Instead, the ATNOLD for the tax year is limited to the sum of:
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The smaller of:
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The sum of the ATNOL carrybacks and carryforwards to the tax year attributable to NOLs other than qualified disaster losses, qualified GO Zone losses, qualified recovery assistance losses, or qualified disaster recovery assistance losses, or
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90% of AMTI for the tax year (figured without regard to the ATNOLD and any domestic production activities deduction), plus
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The smaller of:
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The sum of the ATNOL carrybacks to the tax year attributable to qualified disaster losses, qualified GO Zone losses, qualified recovery assistance losses, or qualified disaster recovery assistance losses, or
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AMTI for the tax year (figured without regard to the ATNOLD and any domestic production activities deduction) reduced by the amount determined under (1), above.
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Enter in the column labeled “After carryback” for each affected carryback year the total of the recomputed general business credits, using Form 3800, 8844, 5884, 6478, 8835 (Section B), or 8846.
If an NOL or net section 1256 contracts loss carryback eliminates or reduces a general business credit in an earlier year, you may be able to carry back the released credit 1 year. See section 39 and the instructions for Form 3800 for more details on general business credit carrybacks.
See your tax return for the carryback year for any additional credits such as the earned income credit, credit for child and dependent care expenses, child tax credit, education credits, foreign tax credit, retirement savings contributions credit, etc., that will apply in that year. If you make an entry on this line, identify the credit(s) claimed.
See your tax return for the carryback year for any other taxes not mentioned above, such as recapture taxes, tax on an IRA, etc., that will apply in that year. If you make an entry on this line, identify the taxes that apply.
If you apply for a tentative refund based on an overpayment of tax under section 1341(b)(1), enter it on this line. Also, attach a computation showing the information required by Regulations section 5.6411-1(d).
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