Instructions For Form 1045 - Application For Tentative Refund

Do not enter business deductions

Line 24—Other Taxes

Schedule B—NOL

on line 6. These are deductions that

See your tax return for the carryback

are connected with a trade or

Carryover

year for any other taxes not

business. They include:

Complete and file this schedule to

•

mentioned above, such as recapture

State income tax on business

determine the NOL deduction for

taxes, tax on an IRA, etc., that will

profits,

each carryback year and the amount

•

apply in that year. If you make an

Educator expenses,

to be carried forward, if not fully

•

entry on this line, identify the taxes

Moving expenses,

absorbed.

•

that apply.

The deduction for one-half of

self-employment tax,

If an NOL is more than the

•

Line 28—Overpayment

Domestic production activities

modified taxable income for the

deduction,

earliest year to which it is carried, you

of Tax Under Section

•

Rental losses,

must file Schedule B to figure the

•

1341(b)(1)

amount of the NOL to be carried to

Loss on the sale or exchange of

business real estate or depreciable

the next tax year. The amount of the

If you apply for a tentative refund

carryover is the excess, if any, of the

property,

based on an overpayment of tax

•

NOL carryback over the modified

Your share of a business loss from

under section 1341(b)(1), enter it on

taxable income for that earlier year.

a partnership or an S corporation,

this line. Also, attach a computation

•

Modified taxable income is the

Ordinary loss on the sale or

showing the information required by

amount figured on line 9 of

exchange of section 1244 (small

Regulations section 5.6411-1(d).

Schedule B.

business) stock,

•

Ordinary loss on the sale or

Signature

If you carry two or more NOLs

exchange of stock in a small business

to a tax year, figure your

Individuals. Sign and date Form

investment company operating under

modified taxable income by

1045. If Form 1045 is filed jointly,

CAUTION

the Small Business Investment Act of

deducting the NOLs in the order in

both spouses must sign.

1958,

•

which they were incurred. First,

Loss from the sale of accounts

Estates. All executors or

deduct the NOL from the earliest

receivable if such accounts arose

administrators must sign and date

year, then the NOL from the next

under the accrual method of

Form 1045.

earliest year, etc. After you deduct

accounting, and

Trusts. The fiduciary or an

•

each NOL, there will be a new,

If you itemized your deductions,

authorized representative must sign

smaller, modified taxable income to

casualty and theft losses (even if they

and date Form 1045.

compare to any remaining NOL.

involve nonbusiness property) and

employee business expenses (such

Make the same entries in each

Schedule A—NOL

as union dues, uniforms, tools, and

column heading as on page 1 of

Complete and file this schedule to

educational expenses).

Form 1045 (see the instructions for

determine the amount of the NOL that

Lines 10 Through 27 on page 3).

Line 7—Nonbusiness

is available for carryback or

carryover.

Income Other Than Capital

Line 2

Gains

Do not take into account on this line

Line 2—Nonbusiness Capital

any NOL carryback from 2007 or

Enter income that is not from a trade

Losses

later. However, do take into account

or business. Examples are ordinary

Do not include on this line any section

NOLs that occurred in tax years

dividends, annuities, and interest on

1202 exclusion amounts (even if

before 2007 and are otherwise

investments.

entered as losses on Schedule D

allowable as carrybacks or

(Form 1040) or Schedule D (Form

Do not enter business income on

carryovers.

1041).

line 7. This is income from a trade or

Note. If your taxable income is

business and includes:

Line 6—Nonbusiness

•

shown as zero on your tax return (or

Salaries and wages,

•

as previously adjusted) for any

Deductions

Rental income,

•

carryback year, refigure it without

Gain on the sale or exchange of

Enter as a positive number

limiting the result to zero, and enter it

business real estate or depreciable

deductions that are not connected

on line 2 as a negative number.

property, and

with a trade or business. They

•

Your share of business income

include:

Line 3—Net Capital Loss

•

from a partnership or an S

IRA deductions,

•

Deduction

corporation.

Health savings account deduction,

•

Archer MSA deduction,

Individuals. Enter as a positive

For more details on business and

•

Deductions for payments on behalf

number the amount, if any, shown (or

nonbusiness income and deductions,

of a self-employed individual to a

as previously adjusted) on Schedule

see Pub. 536.

SEP, SIMPLE, or qualified plan,

D (Form 1040), line 21 (line 18 for

•

Alimony paid,

Line 17—Section 1202

1997– 2003).

•

Most itemized deductions (except

Exclusion

for state income tax on business

Estates and trusts. Enter as a

profits, casualty and theft losses, and

Enter as a positive number any gain

positive number the amount, if any,

any employee business expenses),

excluded under section 1202 on the

shown (or as previously adjusted) on

and

sale or exchange of qualified small

Schedule D (Form 1041), line 16 (line

•

The standard deduction.

business stock.

17 for 1997 –2003).

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Instructions For Form 1045 - Application For Tentative Refund - 2007 Page 6

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