____ You did not claim a net operating loss attributable solely to nonbusiness expenses.
____ If you did not elect to forego the carryback period on a loss year return filed on time, including extensions, you did not deduct the amount eligible for carryback in a later year.
____ You did not deduct a net operating loss after the carry-over period expired.
____ Capital losses that are more than capital gains cannot be taken into account in the net operating loss computation. You did not include such losses in your computation.
____ Interest and dividend income is considered nonbusiness income even though this is your principal source of income. You figured your net operating loss accordingly.
____ Your salary from outside employment must be used to reduce the loss from your business and cannot be offset by nonbusiness deductions. You figured your net operating loss accordingly.
____ Since you sustained a net operating loss in more than one year, the loss occurring in the earlier year was deducted from the income of other years before the later loss.
____ You can deduct nonbusiness items such as taxes on you personal residence or medical expenses only to the extent of nonbusiness gross income and the amount by which nonbusiness capital gains are more than nonbusiness capital losses. You did not include the excess in a net operating loss.
____ Contributions to a retirement plan or IRA on behalf of a self-employed owner-employee, to the extent deductible, are considered nonbusiness deductions. You figured your net operating loss accordingly.
____ The amount by which nonbusiness capital losses are more than nonbusiness capital gains cannot be included in the net operating loss deduction. You did not include these excess nonbusiness capital losses that are not related to real or depreciable property used in a trade or business.
____ You deducted your business capital losses only up to the total of:
(1) Your nonbusiness capital gains that are more than the total of your nonbusiness capital losses and excess nonbusiness deductions, and
(2) Your business capital gains.
____ An election to forego the carryback period is irrevocable and specifies that you are relinquishing the entire carryback period. You lose any part of the net operating loss that you do not absorb by the end of the carryover period. You computed your net operating loss considering such an election, if previously made.
© 1986, 1998 to 2002, Jack Warren Wade, Jr.
