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February 9, 2024
Question

California 3805Q Remove any prior year net operating loss that have expired

  • February 9, 2024
  • 1 reply
  • 0 views

I received following error for California 3805Q from Turbotax 2023.

What is wrong?

 

 

1 reply

March 10, 2024

I am experiencing the same issue.  Per CA FTB, the Carryover Period for NOL is 20 years.

2021 Instructions for Form FTB 3805Q | FTB.ca.gov

 There is some language regarding the suspension of the NOL carryover deduction, but it is NOT applicable to corporations with taxable income of less than $1,000,000.  (I wish it didn't, but this includes me!)

  • For taxable years beginning on or after January 1, 2020, and before January 1, 2023, California has suspended the net operating loss (NOL) carryover deduction. Corporations may continue to compute and carryover an NOL during the suspension period. However, corporations with taxable income of less than $1,000,000 or with disaster loss carryovers are not affected by the NOL suspension rules.

Turbotax currently allows me to enter my NOL from 2021, but NOT for any years earlier.

Please advise.