Insurance Returns: Examples of NOL Utilization
NL Examples
| NL NOL | 1120 Parent with NON SRLY NOL $5,000 | ||
|---|---|---|---|
| 1120 subgroup Tax Return | 1120 subgroup | 1120 Parent | Elim. |
| Taxable Income before NOL | 4,004,000 | 4,004,000 | 0 |
| Less NOL | _________ | _________ | |
| Less Special Deduction | 4,000 | 4,000 | 0 |
| Total NOL and Deduction |
4,000 _______ |
4,000 ________ |
0 ________ |
| Total NOL and Deductions | 4,000,000 | 4,000,000 | 0 |
| Comment: The Non-SRLY NOL are utilized in the topcon (see below) | |||
| NL Consol. Worksheet | NL Consol. | Adjustments | 1120 subgroup | PC subgroup |
|---|---|---|---|---|
| Taxable Income before NOL | 6,006,000 | 4,004,000 | 2,002,000 | |
| Less NOL | 5,000 | 5,000 | None | 0 |
| Less Special Deduction | 6,000 | 4,000 | 2,000 | |
| Total NOL and Deduction |
4,000 ________ |
4,000 ________ |
4,000 ________ |
0 ________ |
| Total NOL and Deductions | 11,000 | 5,000 | 4,000 | 2,000 |
| Taxable Income | 5,995,000 | (5,000) | 4,000,000 | 2,000,000 |
| NL NOL | 1120 Parent with NON-SRLY $5,000, $100 SRLY & $382 Section 382 NOL | ||
|---|---|---|---|
| 1120 subgroup Tax Return | 1120 subgroup | 1120 Parent | Elim. |
| Taxable Income before NOL | 4,004,000 | 4,004,000 | 0 |
| Less NOL | 482 | 482 | |
| Less Special Deduction | 4,000 | 4,000 | 0 |
| Total NOL and Deduction |
4,482 _______ |
4,482 ________ |
0 ________ |
| Total NOL and Deductions | 3,999,518 | 3,999,518 | 0 |
| Comment: The Non-SRLY NOL are utilized in the topcon (see below) | |||
| NL Consol. Worksheet | NL Consol. | Adjustments | 1120 subgroup | PC subgroup |
|---|---|---|---|---|
| Taxable Income before NOL | 6,006,000 | 4,004,000 | 2,002,000 | |
| Less NOL | 5,482 | 5,000 | 482 | 0 |
| Less Special Deduction | 6,000 | 4,000 | 2,000 | |
| Total NOL and Deduction |
4,000 ________ |
4,000 ________ |
4,000 ________ |
0 ________ |
| Total NOL and Deductions | 11,482 | 5,000 | 4,482 | 2,000 |
| Taxable Income | 5,994.518 | (5,000) | 3,999,518 | 2,000,000 |
| NL NOL | 1120 Parent with NON-SRLY $5,000, $100 SRLY & $382 Section 382 NOL, and PC subgroup with $1382 Section 382 NOL | ||
|---|---|---|---|
| 1120 subgroup Tax Return | 1120 subgroup | 1120 Parent | Elim. |
| Taxable Income before NOL | 4,004,000 | 4,004,000 | 0 |
| Less NOL | 482 | 482 | |
| Less Special Deduction | 4,000 | 4,000 | 0 |
| Total NOL and Deduction |
4,000 _______ |
4,000 ________ |
0 ________ |
| Total NOL and Deductions | 3,999,518 | 3,999,518 | 0 |
| Comment: The Non-SRLY NOL are utilized in the topcon (see below) | |||
| NL NOL | 1120 Parent with NON-SRLY $5,000, $100 SRLY & $382 Section 382 NOL, and PC subgroup with $1382 Section 382 NOL | ||
|---|---|---|---|
| 1120 subgroup Tax Return | 1120 subgroup | 1120 Parent | Elim. |
| Taxable Income before NOL | 2,002,000 | 2,002,000 | 0 |
| Less NOL | 1,382 | 1,382 | |
| Less Special Deduction | 2,000 | 2,000 | 0 |
| Total NOL and Deduction |
3,382 _______ |
3,382 ________ |
0 ________ |
| Total NOL and Deductions | 1,998,618 | 1,998,618 | 0 |
| Comment: The Non-SRLY NOL are utilized in the topcon (see below) | |||
| NL Consol. Worksheet | NL Consol. | Adjustments | 1120 subgroup | PC subgroup |
|---|---|---|---|---|
| Taxable Income before NOL | 6,006,000 | 4,004,000 | 2,002,000 | |
| Less NOL | 6,864 | 5,000 | 482 | 0 |
| Less Special Deduction | 6,000 | 4,000 | 2,000 | |
| Total NOL and Deduction |
4,000 ________ |
4,000 ________ |
4,000 ________ |
0 ________ |
| Total NOL and Deductions | 12,864 | 5,000 | 4,482 | 3,382 |
| Taxable Income | 5,993,136 | (5,000) | 3,999,518 | 1,998,618 |
LNL Examples
| LNL NOL | 1120 Parent with $5,000 NON-SRLY, $100 SRLY & $382 Section 382 NOL, PC subgroup with $1382 Section 382 NOL, and Life subgroup with $10,382 Section 382 NOL | ||
|---|---|---|---|
| 1120 subgroup Tax Return | 1120 subgroup | 1120 Parent | Elim. |
| Taxable Income before NOL | 4,004,000 | 4,004,000 | 0 |
| Less NOL | 482 | 482 | |
| Less Special Deduction | 4,000 | 4,000 | 0 |
| Total NOL and Deduction |
4,482 _______ |
4,482 ________ |
0 ________ |
| Total NOL and Deductions | 3,999,518 | 3,999,518 | 0 |
| Comment: The Non-SRLY NOL are utilized in the topcon (see below) | |||
| LNL NOL | 1120 Parent with $5,000 NON-SRLY, $100 SRLY & $382 Section 382 NOL, PC subgroup with $1382 Section 382 NOL, and Life subgroup with $10,382 Section 382 NOL | ||
|---|---|---|---|
| PC subgroup Tax Return | PC subgroup | PC Parent | PC Elim. |
| Taxable Income before NOL | 2,002,000 | 2,002,000 | 0 |
| Less NOL | 1,382 | 1,382 | |
| Less Special Deduction | 2,000 | 2,000 | 0 |
| Total NOL and Deduction |
3,382 _______ |
3,382 ________ |
0 ________ |
| Total NOL and Deductions | 1,998,618 | 1,998,618 | 0 |
| Comment: The Non-SRLY NOL are utilized in the topcon (see below) | |||
| LNL NOL | 1120 Parent with $5,000 NON-SRLY, $100 SRLY & $382 Section 382 NOL, PC subgroup with $1382 Section 382 NOL, and Life subgroup with $10,382 Section 382 NOL | ||
|---|---|---|---|
| LIFE subgroup Tax Return | LIFE subgroup | LIFE Parent | LIFE Elim. |
| Taxable Income before NOL | 1,001,000 | 1,001,000 | 0 |
| Less NOL | 10,382 | 10,382 | |
| Less Special Deduction | 1,000 | 1,000 | 0 |
| Total NOL and Deduction |
11,382 _______ |
11,382 ________ |
0 ________ |
| Total NOL and Deductions | 989,618 | 989,618 | 0 |
| Comment: The Non-SRLY NOL are utilized in the topcon (see below) | |||
| LNL Consol. Worksheet | LNL Consol. | Adjustments | 1120 subgroup | PC subgroup | Life Subgroup |
|---|---|---|---|---|---|
| Taxable Income before NOL | 7,007,000 | 4,004,000 | 2,002,000 | 1,001,000 | |
| Less NOL | 17,246 | 5,000 | 482 | 1,382 | 10,382 |
| Less Special Deduction | 6,000 | 4,000 | 2,000 | 1,000 | |
| Total NOL and Deduction |
7,000 ________ |
________ |
4,000 ________ |
0 ________ |
0 ________ |
| Total NOL and Deductions | 24,246 | 5,000 | 4,482 | 3,382 | 11,382 |
| Taxable Income | 6,982,754 | (5,000) | 3,999,518 | 1,998,618 | 989,618 |
1120/ins_nol_5.htm/TY2021
Last Modified: 03/20/2020
Last System Build: 01/31/2023
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