Form NOL-85 Fillable Computation of Net Operating Loss
(all forms fillable on Windows, Mac, Android tablets, and iPad using Adobe Reader XI)

Clerical help Dues to professional organizations and chambers of commerce Educational expenses required by employer or to maintain present skills Fees to employment agencies to secure employment Office rent and expenses for office in home Physical examinations required by your employer Protective clothing such as hard hats and safety shoes Safety deposit box Safety equipment small tools and supplies used in the taxpayer s job Subscriptions to professional journals Telephone required for business Travel expenses to a second job Uniforms required by your employer Union dues $7 000 00 are more than the Taxable Income ($5 000 00) ($ 2 000 00) ($ 8 000 00) ($10 500 00) ($15 000 00) ($5 000 00) (b)Enter the TotalItemized Deductionsclaimed on Schedule A (b)Gain on sale of nonbusiness assets (b)Loss on sale of nonbusiness assets (b)Other miscellaneous business deductions (c)Federal income tax refunds reported on loss year return (Form 40 only) (c)Payments to Individual Retirement Arrangement (IRA) Keogh retirement plan or SEP plan (checkbox) Unchecked (d)Penalty on early withdrawal of savings (Form 40 only) (d)Taxable distributions from pensions annuities IRAs or other retirement plans (Form 40 only) (e)Alimony paid (e)Alimony received (Form 40 only) (f)Adoption expenses (f)Trust and/or Estate income from Schedule E (g)Other (explain) (g)Self employed health insurance deduction from Page 2 Part II of Form 40 or 40NR (h)Other (explain) (including distributive shares of gains or losses from such assets held by a part (Reset Form) Reset Form (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (text) (with *XX001885* 1(a)Federal income tax claimed as a deduction on the loss year return 1a Enter the federal income tax claimed as a deduction on the loss year 1a1b1c1d1e1f1g1h2a562b43a3b8923451677a7b7c7d7e7f7g() 1c 1h 1Enter the TaxableIncomefrom Form 40 or Form 40NR 2(a)Enter the Standard Deductionclaimed on return (Skip lines 2b 3a b 4 and 5) 2000 Adjusted Gross Income 2Net Operating Loss claimed on the loss year return (if any) 3(a)Casualty or theft loss claimed on Schedule A 3Personal exemption claimed on the loss year return 40 18 15 2 40NR the amount claimed should be entered on the appropriate lines 4Dependent exemption claimed on the loss year return 4Total Adjustments to Schedule A Add lines 3a and 3b 5Enter the Excess Nonbusiness Deductions Over Nonbusiness Income from line 9 Part Iabove 5TOTALNONBUSINESSITEMIZED DEDUCTIONS Subtract line 4 from line 2b 6TOTALMODIFICATIONS Add lines 2 3 4 and 5 6TOTALNONBUSINESSDEDUCTIONS Add lines 1a through 2a and 5 7 000 00 7(a)Interest and Dividend Income (Form 40 only) 7a 7g 7NET OPERATINGLOSSALLOWABLE Combine lines 1 and 6 If the result is a negative figure enter here If zero or a 8 500 00 810 3 15 27 was promulgated to administer the new NOL law set forth in Section 8TOTALNONBUSINESSINCOME Add lines 7a through 7g 9EXCESSNONBUSINESSDEDUCTIONSOVERNONBUSINESSINCOME Ifline6exceedsline8 subtractline8fromline6 A net operating loss is an amount that business deductions (after modifications) accurately adjustments after Alabama Alabama Loss allowable Amended amount amount amounts amounts that can be used to figure an NOL and dividend income received by a partnership or an Alabama S corporation another any of these adjustments to income on Part II Form 40 or Parts II or III of Form any unused portion may then be carried forward to succeeding years (see instructions) See Part III instructions for election to forfeit carryback provision as a miscellaneous deduction including those expenses (after 2% A G I limitation) assets assets not used in a trade or business available awards etc back period is not made or is not bama source income when completing line 3b before Before Part I or Part II can be completed you must first complete Form 40 or Before preparing this form the loss year return must beginning below business business but DO C or Schedule carried carry the loss forward you should attach Form NOL 85A to the first available year carryback casualty Caution: checking the claimed claimed claimed on line 2a and omit lines 2b 3a 3b 4 and 5 If you claimed Itemized De claiming clude the following expenses if incurred in the production or protection of business Combine complete completed Computation of Net Operating Loss December deduction Deduction Department of Revenue dependent determine determining distributive dividend ductions enter on line 2b the total of all itemized deductions claimed in Schedule earliest earliest year preceding the loss year in which the NOL may be utilized Attach Form elect to carryforward any elect to forfeit the election election once made is irrevocable Election to Carry Net Operating Loss Forward Ending enter Enter the name and social security number of the taxpayer exactly as shown on Enter the total of all business related expenses claimed on Schedule A Enter the total of all losses resulting from the sale of property and other entered as a positive figure even though it is shown as a negative figure on the loss entered on the appropriate line Entertheresulthereandonline5 PartIIbelow Ifline8exceedsline6 enter 0 hereandalsoonline5 PartIIbelow eral guidelines will be followed whenever possible in admin is ter ing the Alabama Example Example: Examples of items that should be included on these exceed business income The most common reason for an NOL is a loss in operat Excess Nonbusiness Deductions Over Nonbusiness Income exemption expense extensions extensions) filing first be completed through the taxable income line See instructions on the reverse side for further information follow following the loss year for carrying the loss back or forward For loss years beginning after December 31 1997 the election to forgo the car fore the due date (with extensions) for filing the income tax return for the loss year Form 40NR through the taxable income line for the loss year If any amount in the Form NOL 85 forward from another year cannot be used in computing the NOL deduction If you claimed Gains or losses from the sale of assets not used in a trade or business General Instructions have a net operating loss and Heading hereby However If no election is made by the due date of the loss year return then the filing of the If the amount on line 7 Part II above is a negative figure you may elect to carry this loss forward or it must be carried back 2 years (3 years prior to January 1 1998) and If you claimed a deduction for a casualty or theft loss on Schedule A If you elect to carry the loss back attach Form NOL 85 to the loss year return ifications as required See the instructions for Form NOL 85A for further information In Example I above there is no net operating loss since the Total Modifications In Example II above there is a net operating loss of $8 000 00 In order to carry in Part III If a proper election to forego the carry In the upper right corner enter the date that the loss year ends A calendar year including income income income Income income gambling income prizes awards and director s fees income the amount claimed should be entered on this line The amount should be income: Individual individuals instruc Instructions For Completing Form NOL 85 interest is designed to determine the actual net operating loss items January Less: Total Deductions LESSBUSINESSDEDUCTIONS: line 6 If the result is a positive figure you DO Line 7a Interest lines Lines Lines lines are as follows: listed loss year return results in a negative figure it should be shown as a negative figure loss year return should be entered on these lines losses can also create an NOL Alabama law limits the kinds of deductions and the making the mod Modifications (enter all amounts on lines 2 through 6 below as positive amounts) Name(s) as shown on Form 40 or 40NR negative nership or an Alabama S corporation) net operating loss NET OPERATING LOSS NOL 85 NOL 85 NOL 85A NONBUSINESS DEDUCTIONS: NONBUSINESS INCOME: Nonresidents should include only business expenses related to their Ala NOT CHECK THE Note: of a personal residence to the extent recognized for federal OF SCHEDULE of these sources on Form 40 or Form 40NR the taxable amount reported should be On line 7(g) include items such as director s fees royalty income gambling income prizes on the return instead of zero Other nonbusiness income includes items such as gains from the sale PART I PART II PART III PARTIExcessofNonbusinessDeductionsOverNonbusinessIncomePARTIIComputationofNetOperatingLossPARTIIIElectiontoForfeitCarrybackProvision(CAUTIONDoNotCompletePartIIIIf YouAreCarryingLossBack) personal positive positive figure STOP DONOT FILETHISFORM You DONOThave a net operating loss preparation prior provision and instead purpose PURPOSE purposes royalty qualify quickly reducing related reported reported on Federal Form 2106 For the purpose of determining an NOL these in return return Return Rev 6/14 ryback period can be made in one of two ways The election can be made on or be Schedule shares should should should not file Form NOL 85 shown sidered nonbusiness deductions for the purpose of figuring an NOL If you claimed specific Specific Instructions Standard stead carry the loss forward to the first available year following the loss year This sustained in the loss year that may be carried back or carried forward tax year 2008 and after you should use a tax form and check the amended box To taxable taxable Taxable Income Taxable income from Form 40 taxpayer should enter 12 31 and a fiscal year taxpayer should enter the date The Alabama Legislature passed Act 98 502 which amended the net operating The Alabama NOL provision is similar to the Federal NOL in many ways Fed the amount claimed should be entered on this line The amount shown on line 9 Part I should be entered on this line The election once made is irrevocable the fiscal tax year ends The income items shown on lines 7a 7g are considered nonbusi the loss back or forward you must also complete Form the loss year return the return shall be considered the taxpayer s election to forgo the carryback period theft thereby timely made the NOL must be carried back to the tions Total Modifications When calculating an NOL a net operating loss carryover or carryback which year return year s year The election once made is irrevocable years You may elect to forego the carryback of a net operating loss deduction and in Your Social Security Number