Small Business Taxes & Management


Carryforward Items


Small Business Taxes & ManagementTM--Copyright 2020, A/N Group, Inc.



There are a number of items that may not be deductible or claimed as a credit on your current return because of one or more limitations. Often it's an income limitation, but there are others such as those applied to passive losses. If you use the same software to prepare your return every year, the program should handle the mechanics of carrying the deduction, loss, credit, etc. forward, but it doesn't hurt to check. If you're switching programs, or tax preparers, you should be aware of items below. The list below includes both business and individual carryforwards.

We've broken this down into three lists--General Carryforward Items, Foreign Tax Credit, and General Business Credit. On the General Business Credit, if the item (e.g., Work Opportunity Credit) has already been carried forward it'll be on Form 3800. We've included the numbers of the original forms as an aid.

Most states with an income tax also have carryforward items. Many follow the federal rules, but most have modifications. Many states have credits, exclusions, etc. not on the federal and some of these can be carried forward also. The differences can include no carryover, a limit on the dollar amount or number of years, etc. Check the rules for your state carefully.


General Carryforward Items

___ Net operating loss carryforward
___ Business use of home operating loss carryforward
___ Business use of home casualty loss carryforward
___ Vacation home loss carryforward (operating expenses; depreciation)
___ Long-term capital loss carryforward
___ Short-term capital loss carryforward
___ Unrecaptured net Section 1231 losses from 1st, 2nd,3rd, 4th and 5th prior year
___ Alternative minimum tax net operating loss carryforward
___ Alternative minimum tax prior year credit carryforward (Form 8801)
___ Passive activity loss carryforward (ordinary business loss)
___ Passive activity loss carryforward (real estate losses)
___ Passive activity credit carryforward
___ Passive activity losses (Form 4797, long-term, short-term)
___ At-risk limitation carryforward
___ Section 179 expense deduction carryforward (Form 4562)
___ Residential energy efficient property credit carryforward (Form 5695)
___ Foreign earned income housing deduction
___ Unused general business credit (see below)
___ Charitable contribution carryforward (property subject to 50%, 30%, and 20% limitation; Qualified Conservation Contribution)
___ Investment interest limitation (Form 4952)
___ Schedule K-1 carryovers from 1041, 1065, 1120S
___ Qualified adoption credit carryforward (Form 8839)
___ D.C. First time homebuyer credit carryforward (Form 8859)
___ Qualified business loss carryforward
___ Qualified REIT dividends and qualified PTP loss carryforward
___ Business interest disallowed under Sec. 163(j)
___ Qualified REIT income and publicly traded partnerhip loss carryforward
___ Excess contributions to traditional IRA (taxpayer, spouse)
___ Excess contributions to Roth
___ Excess contributions to Health Savings Account
___ Excess contributions to Archer MSA
___ Installment sale gains
___ State credits

Foreign Tax Credit Carryforward

___ Passive category income
___ AMT Passive category income
___ General category income
___ AMT General category income
___ Lump-sum distributions
___ AMT Lump-sum distributions

General Business Credit Carryforwards

___ Investment credit (Form 3468)
___ Increasing research activities (Form 6765)
___ Small employer health insurance premiums (Form 8941)
___ Employer social security and Medicare taxes paid on certain employee tips (Form 8846)
___ Work opportunity (Form 5884)
___ Small employer pension plan startup costs (Form 8881)
___ Low-Income Housing (Form 8586)
___ Disabled access (Form 8826)
___ Renewable electricity, refined coal and Indian coal production
___ Indian employment (Form 8845)
___ Orphan drug
___ New markets (Form 8874)
___ Employer-provided child card facilities and services (Form 8882)
___ Biodiesel and renewable diesel fuels (Form 8864)
___ Low sulfur diesel fuel production (Form 8896)
___ Distilled spirits (Form 8906)
___ Nonconventional source fuel (Form 8907)
___ Energy efficient home (Form 8908)
___ Energy efficient appliance (Form 8909)
___ Alternative motor vehicle (Form 8910)
___ Alternative fuel vehicle refueling property (Form 8911)
___ Mine rescue team training (Form 8923)
___ Agricultural chemicals security (Form 8931)
___ Employer differential wage payments (Form 8932)
___ Carbon dioxide sequestration (Form 8933)
___ Qualified plug-in electric drive motor vehicle (Form 8936)
___ New hire retention
___ General credits from an electing large partnership
___ Biofuel producer (Form 6478)
___ Qualified railroad track maintenance (Form 8900)


Copyright 2020 by A/N Group, Inc. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The information is not necessarily a complete summary of all materials on the subject. Copyright is not claimed on material from U.S. Government sources.--ISSN 1089-1536

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--Last Update 12/30/20