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Screen CACO - California Loss Carryovers (1040)

Overview

Use this screen to enter carryover information to complete Form 3805V and Schedules D (540), D (540NR), D-1, P (540), and P (540NR).

Capital Losses

Enter capital loss carryover information in this section. UltraTax CS uses this data together with information from the CAInc and CAAMT Screens to complete Forms 3526 and 3805V and Schedules D (540), D (540NR), D-1, and P.
Enter the California net capital loss carryover from the prior-year version of Form 540 or 540NR.
Use this field to enter the California AMT net capital loss carryover calculated from the prior-year version of Schedule P (540NR).
The federal carryover amounts appear in these fields. When no data is entered in the
Total source amounts using California law (Force)
 fields, the calculation defaults to the federal amounts for Total source capital loss carryovers. UltraTax CS treats blank
California Source
 field amounts for nonresident and part-year returns as having no carryover. UltraTax CS does not default to federal amounts for California source capital loss carryovers.
Amounts entered in this field are used in the calculation of the Alternative Minimum Tax version of Form 3805V. This amount is not calculated by UltraTax CS and does not proforma.
UltraTax CS treats blank AMT carryover fields as having no AMT carryover. UltraTax CS does not use the regular carryovers as a default AMT amount. If there is no difference between the regular and AMT carryover, enter the same amount in both the regular and AMT carryover fields. This information is used by UltraTax CS to complete Schedule P (540) and the California Schedule D AMT Worksheet.

Unrecaptured Section 1231 Losses

Use this section to track Section 1231 unrecaptured losses. UltraTax CS uses this information to complete Schedule D-1, Schedule P (540), the California Schedule D-1 AMT Worksheet, and the California Schedule D-1 California Sources Worksheet.
Use these fields to enter the Section 1231 unrecaptured losses. Enter the losses as positive numbers. When no data is entered, California source amounts default to amounts under California law.
UltraTax CS treats blank AMT carryover fields as having no AMT carryover. UltraTax CS does not use the regular carryovers as a default AMT amount. If there is no difference between the regular and AMT carryover, enter the same amount in both the regular and AMT carryover fields. This information is used by UltraTax CS to complete Schedule P (540) and the California Schedule D-1 AMT Worksheet.

Disaster and Net Operating Losses

Enter NOL and disaster carryovers in this section. UltraTax CS uses this information to calculate Schedules CA (540) and CA (540NR), Form 3805V, and the California NOL and Disaster Loss Carryover Worksheet. Information proformas to this section from the
2023
 return.
In tax years 2002 and 2003, taxpayers were not allowed to use net operating loss carryforward from prior years. The carryforward period for the suspended NOL may have been extended for one or two years, depending on the taxpayer's circumstances. Specifically, California allows an extension to the carryforward period of a given NOL only if the given NOL carryforward would have otherwise been used in 2002 or 2003. If the given NOL carryforward could not have been used anyway, such as the circumstance in which the 2002/2003 taxable income would have been reduced to zero by
other
 NOL carryforward from prior years, then the carryforward period for the given NOL would not have been extended.
Likewise, in tax years 2008, 2009, 2010, and 2011, certain high-income taxpayers were not allowed to use net operating loss carryforward from prior years. The carryforward period for these suspended NOLs may have been extended up to four years, depending on the taxpayer's circumstances.
UltraTax CS proformas all Disaster, General, New Business, and Small Business NOL carryforward calculated on the prior year (
2023
) return to this screen. If an NOL carryforward entered in this screen has exceeded the original carryforward period, UltraTax CS issues an informational diagnostic message.
Use this statement dialog for completing Form 3805V, Net Operating Loss (NOL) Computation. Enter all types of NOL
carryovers
 in this section. Also use this section to re-assign eligible
current year
 (
2023
) NOL from Type "General" to another NOL Type, such as Disaster, New Business, or Small Business loss. This section is updated automatically in next year's proforma.
Carryover from Prior Year:
Enter Loss Year, NOL Type, and other information as described below. Information is reported on Form 3805-V, Page 3.
Carryover from Future Year:
Caution:
 Only net operating losses from tax years 2013 through 2018 may be carried back to offset taxable income in a prior year. Taxpayers are not allowed to carry back net operating losses generated in
2023
 or beyond. If extenuating circumstances apply, or if future legislation has changed to once again allow NOL carryback, then this statement may be used to enter NOL carryback from a future year.
If amending this return for purposes of applying an NOL carryback from a future year, enter Loss Year, NOL Type, and other information in same fashion as NOL carryforward from a prior year. Information is reported on Form 3805V, Page 3.
Current Year (
2024
) Loss:
Current year (
2024
) losses default to "General" losses on Form 3805V, Page 3. Enter the portion of current year NOL attributable to small business loss, new business loss, or disaster loss to report on Form 3805V, Page 3 as described below. The remainder, if any, is reported as General loss on Form 3805V, Page 3.
The information that follows describes how to enter information in the attached statement dialog.
Loss Year:
 Enter the year of loss. This entry indicates the section of Form 3805V in which to include the amount. If re-assigning a current year (
2024
) "General" NOL to another NOL Type, enter Loss Year "
2024
."
NOL Type:
 Enter the type of NOL. From the fieldview, choose the type of NOL.
Disaster Code:
 For entries with code
1
, Disaster Loss in the
NOL Type
 column, enter the disaster code from the instructions for Form 3805V. A code other than those available in the fieldview may be entered if the disaster is assigned a code after the final release of UltraTax CS.
Business Code:
 For entries with code
3
 or
4
 for New Business and Eligible Small Business Losses in the
NOL Type
 column, enter the
SIC
 code from the Form 3805V instructions.
Order Used:
 UltraTax CS defaults to using the losses from new businesses first, then from eligible small businesses, then from all other NOLs in the order they are entered in the statement dialog. To use the losses in a different order, enter the order to be used within the year.
New Business Years:
 For losses incurred prior to 2000 with entries in the
NOL Type
 column of code
3
, New Business, enter the number of years that the new business loss may be transferred forward.
Initial Loss Total Source:
Carryover from prior year or future year: Enter the initial loss for Total Source calculations.
Current year loss to be re-assigned from "General" to a different NOL type: Enter the portion to be re-assigned.
C/O Total Source:
Carryover from prior year or future year: Enter the portion of the Total Source initial loss transferred forward from the prior year.
Current year loss to be re-assigned from "General" to a different NOL type: Leave this column blank. UltraTax CS ignores any amount in this field.
Initial Loss CA Source:
Carryover from prior year or future year: Enter the initial loss for the California Sources unit of Form 3805V, Page 3 calculations. UltraTax CS treats blank
California Source
 field amounts as having no California Source. UltraTax CS does not default to using the Total Source amounts. If there is no difference between the Total and California source amounts, enter the amount in both columns.
Current year loss to be re-assigned from "General" to a different NOL type: Enter the portion to be re-assigned. UltraTax CS does not default to using the Total Source amounts.
C/O CA Source:
Carryover from prior year or future year: Enter the portion of the California Source initial loss transferred forward from all prior years to report on the California Sources unit of Form 3805V, Page 3. UltraTax CS treats blank
California Source
 field amounts as having no California Source. UltraTax CS does not default to using the Total Source amounts. If there is no difference between Total and California source amounts, enter the amount in both columns.
Current year loss to be re-assigned from "General" to a different NOL type: Leave this column blank. UltraTax CS ignores any amount in this field.
UltraTax CS uses the information in this statement dialog to complete Schedules P and P (540NR) and an Alternative Minimum Tax version of Form 3805V. Enter all types of Alternative Minimum Tax NOL carryovers and current-year eligible small business, new business, and disaster loss information in this statement dialog. Blank amounts in this statement dialog are treated as zero; AMT amounts do not default to regular tax amounts.
The California NOL Carryover Suspension Worksheet calculates Business Income and Modified AGI (for NOL purposes) to determine if use of NOL carryover from prior years is allowed or suspended on Form 3805-V, Part III. Use these fields to enter amounts or to force calculated amounts on the worksheet.
This field is informational only. In tax year 2008, taxpayers with net business income greater than $500,000 were not allowed to use net operating loss carryforward from prior years. The carryforward period for the suspended NOL may have been extended up to four years, depending on the taxpayer's circumstances. The information in this field proformas from year to year.
This field is informational only. In tax year 2009, taxpayers with net business income greater than $500,000 were not allowed to use net operating loss carryforward from prior years. The carryforward period for the suspended NOL may have been extended up to three years, depending on the taxpayer's circumstances. The information in this field proformas from year to year.
This field is informational only. In tax year 2010, taxpayers with federal AGI (excluding federal NOL carryforward used) greater than $300,000 were not allowed to use net operating loss carryforward from prior years. The carryforward period for the suspended NOL may have been extended up to two years, depending on the taxpayer's circumstances. The information in this field proformas from year to year.
This field is informational only. In tax year 2011, taxpayers with federal AGI (excluding federal NOL carryforward used) greater than $300,000 were not allowed to use net operating loss carryforward from prior years. The carryforward period for the suspended NOL may have been extended by one year, depending on the taxpayer's circumstances. The information in this field proformas from year to year.
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