Publication 536: Net Operating Losses (NOLs) for Individuals, Estates, and Trusts;

This is archived information that pertains only to the 2004 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

Table 1. (Continued). Summary: This is the continuation of the worksheet to determine the net operating loss carryover from 2004 to 2005. The line items to be completed are:

Under “Adjustment to Overall Itemized Limit:”

“32. Enter the amount on Schedule A (Form 1040), line 28” field

“33. Add lines 16, 19, 24, and 29, and the amounts on Schedule A (Form 1040), lines 9, 14, and 27” field

“34. Add lines 16 and 24, the amount on Schedule A (Form 1040), line 13, and any gambling losses included on Schedule A (Form 1040), line 27” field

“35. Subtract line 34 from line 33. If the result is zero, enter the amount from line 31 on line 6 above and stop here. Otherwise, go to line 36” field

“36. Multiply line 35 by 80% (.80)” field

“37. Subtract $137,300 ($68,650 if married filing separately) from the amount on line 12” field

“38. Multiply line 37 by 3% (.03)” field

“39. Enter the smaller of line 36 or line 38” field

“40. Subtract line 39 from line 33. Enter the result (but not less than your standard deduction amount)” field

“41. Subtract line 40 from line 32. Enter the result here and on line 6” field