NOL-F85A: Application of Net Operating Loss Carryback or Carryforward – Fiduciary Return (Form 41) (2024)
Alabama · Alabama DOR · Used for tax years 2024
Alabama Form NOL-F85A applies an estate’s or trust’s net operating loss to a carryback or carryforward year for its fiduciary return, Form 41. It calculates the unused loss, the loss applied, and the resulting Alabama taxable income and tax due.
Who files this form
Form NOL-F85A is for an estate or trust that files Alabama Form 41 and is applying a net operating loss to the next taxable year to which the loss is being carried.
Before completing this form, you must complete Form NOL-F85 to determine whether you have an allowable net operating loss and how much may be carried back or forward. Form NOL-F85A does not apply if the Alabama taxable income entered on line 3 is zero or negative.
What you'll need
- Completed Form NOL-F85: This determines the allowable loss and the amount available to carry back or forward. Line 2 of NOL-F85A uses the loss from Form NOL-F85, Part II, line 17, or the unused loss from line 4 of a prior NOL-F85A.
- Alabama Form 41: You need the estate or trust name as shown on the return and the taxable income from page 1, line 5 or 6.
- Schedule ESBT, if applicable: Use line 20 for the taxable income entries.
- Identifying and loss-year information: Have the federal employer identification number, the year ending date, the beginning and ending dates of the loss year, and whether you elected on Form NOL-F85 to give up carrying the loss back.
Common mistakes
- Skipping Form NOL-F85: The form says you must complete NOL-F85 before completing NOL-F85A.
- Using NOL-F85A when line 3 is zero or negative: The form specifically says it does not apply in that situation.
- Overlooking the ESBT directions: For Schedule ESBT NOL, use Schedule ESBT, line 20, for lines 3 and 5. In Part III, ESBT filers complete only lines 10 and 11.
- Not transferring the final tax amount: Line 11 must be carried to Alabama Form 41, page 1, line 5a or 6a. For Schedule ESBT NOL, use Schedule ESBT, line 21.
Questions people ask
What is the difference between Form NOL-F85 and Form NOL-F85A?
Form NOL-F85 determines whether you have an allowable net operating loss and the amount that may be carried back or forward. Form NOL-F85A applies that loss to the next taxable year to which it is being carried.
Can an unused loss be carried to another year?
Yes. If the unused loss on line 4 is greater than zero, the form says you may carry that amount forward to the next applicable year using Form NOL-F85A.
How do I calculate the loss applied to this year?
On line 6, subtract the unused loss on line 4 from the loss on line 2. If line 4 is zero, enter the amount from line 2.
How do I calculate taxable income after applying the loss?
Subtract line 6 from line 5 and enter the result on line 7. Then complete the applicable lines in Part III to determine the tax due after applying the loss.