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How To Input A Prior Year Loss Carryover On Form 1120

If the carryover is from a Net Operating Loss, from the Main Menu of the Tax Return (Form 1120) select:

  • Schedule K – Other Information
  • Available NOL Carryover From Prior Years 

The amount entered will offset income for the current year. Any unused portion will carry forward to next year’s return.


If the carryover is a Capital Loss, from the Main Menu of the Tax Return (Form 1120) select:

  • Income 
  • Capital Gain Net Income (Schedule D)
  • Other Short Term Data
  • Unused Capital Loss Carryover

The loss carryover will only offset the gain.  If the return was done in the prior year the amount will carry over to the current year.

NOTE: This is a guide on entering losses into the Keystone Tax Solutions Pro program.  This is not intended as tax advice.

Updated on September 8, 2020

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