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Base year 2021—John’s federal income after subtractions was John’s taxable income worksheet for base year 2020
$32,500 for tax year 2021, but he had an Oregon-only NOL
of $14,500. John elected to carry the NOL back two years. 1. 2020 income after
Of this amount, $5,500 was absorbed by John’s 2019 Oregon subtractions from
income, leaving a $9,000 carryover to 2020. Form OR-40-P or OR-
40-N, lines 34F and
Because he had an NOL for 2021, John will need to use the 34S. 1a. $25,625 1b. ($8,150)
taxable income worksheet for base year 2021.
2. 2020 capital loss
Base year 2022—John’s Oregon taxable income was positive deduction from
for 2022, even after absorbing the remaining 2021 NOL. He federal Schedule D,
doesn’t need to use a taxable income worksheet for base line 21, as a positive
year 2022. amount. 2a. $3,000 2b. $3,000
John’s worksheet for base year 2020. Here is how John will 3. Capital loss carryover
complete the Oregon column of his taxable income work- from 2020 to 2021 as a
sheet for base year 2020. positive amount. 3a. $4,000 3a. $7,000
Line 1. John combines his original $850 income after sub- 4. Add lines 1, 2 and 3. 4a. $33,625 4b. $1,850
tractions with the $9,000 NOLD, resulting in income after 5. Net loss from 2020
subtractions of ($8,150) without limiting it to zero. federal Schedule D,
line 16, as a positive
Line 2. John enters the $3,000 capital loss deduction from his amount. 5a. $7,000 5b. $7,000
2020 federal Schedule D, line 21.
6. Line 4 minus line 5. 6a. $25,625 6b. ($5,150)
Line 3. When John carried the $9,000 NOLD to 2020, he
7. NOL for 2020, as a
wasn’t allowed to claim the $3,000 capital loss deduction.
positive amount, or
He recomputes his capital loss carryover by adding the disal-
if no NOL for 2020,
lowed $3,000 deduction to the original $4,000 carryover. He
unused portion of
enters $7,000 ($3,000 + $4,000) on line 3.
NOLD carried to
Line 4. The total on line 4 is the 2020 base year income with 2020, if any, carried
the NOL deduction allowed in full, with the 2020 capital loss over to tax years after
deduction added back, plus the recomputed capital loss car- 2020, as a positive
ryover. The amount John enters on line 4 is $1,850 [($8,150) amount. 7a. $0 7b. $5,150
+ $3,000 + $7,000]. 8. Line 6 plus line 7.
Line 5. John enters the full $7,000 net capital loss from the This is your income
2020 Schedule D, line 16. after subtractions for
2020. 8a. $25,625 8b. $0
Line 6. John subtracts the $7,000 net capital loss from the
amount on line 4. The result is negative $5,150 ($1,850– John’s worksheet for base year 2021. John’s federal income
$7,000). This represents John’s base year 2020 income with after subtractions for 2021 is $32,500. His Oregon income after
the NOL deduction in full, after the adjusted capital loss. subtractions, including the deduction for the capital loss car-
Next, John will add back the portion of the NOL deduction ryover from 2020, is ($17,500). To arrive at the NOL amount
that can provide a benefit in another year. of ($14,500), the $3,000 capital loss deduction is added back.
Line 7. John figures how much of the NOL deduction will Here is how John will complete the Oregon column of his
provide a benefit in another year by determining how much taxable income worksheet for base year 2021.
of the NOLD was absorbed by his 2020 income. He starts Line 1. John enters ($17,500), his 2021 income after subtractions.
by adding the $3,000 capital loss deduction back to the $850
taxable income, for a total of $3,850 in available income. Line 2. John enters the $3,000 capital loss deduction from his
From this amount, he subtracts the $9,000 NOLD, arriving 2021 federal Schedule D, line 21.
at ($5,150). This is the unused amount of NOLD that John Line 3. When John first completed the 2021 Schedule D,
will carry forward to another year. John enters $5,150 as a he had a capital loss carryover of $4,000 from 2020 and a
positive amount on line 7. $3,000 deduction on line 21. When John computed the NOL
Line 8. John adds the ($5,150) base year 2020 income from amount, he wasn’t allowed to claim the $3,000 capital loss
line 6 to the $5,150 unused NOLD from line 7. The result is deduction. He recomputes the capital loss carryover by add-
$0. This is John’s base year 2020 income for FIA purposes. ing the disallowed $3,000 deduction to the original $4,000
carryover. He enters $7,000 ($3,000 + $4,000) on line 3.
John enters $25,625 in the federal column and $0 in the
Oregon column on Schedule OR-FIA-COMP, Computation Line 4. The total on line 4 is the 2021 income after subtrac-
A for base year 2020, line 1. tions with the 2021 capital loss deduction added back, plus
the recomputed capital loss carryover. The amount John
enters is negative $7,500 [($17,500) + $3,000 + $7,000].
150-101-180 (Rev. 08-29-23) 12 2023 Publication OR-FIA
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