When the NOL Allowance Rate is set to 50% and the Base NOL Allowance is set to 0, the NOL Reclass is the sum of 50% of the Federal Taxable Income, NOL Deferred Only (0), and NOL Balance Sheet Only (0).

(2,048,000 <TI Pre-NOL> * 50%<NOL Allowance Rate>) + 0<DO> + 0<Bal O> = -(1,024,000)<NOL Reclass>

 

If the NOL Reclass is added to the Federal Taxable Income (Pre-NOL), the Federal Taxable Income (Post-NOL) is 1,024,000.

2,048,000<TI Pre-NOL> + -1,024,000 <NOL Reclass> = 1,024,000 <TI Post-NOL>

 

NOL Ending Balance

(Beginning Bal + Deferred Only + Balance Sheet Only) + (NOL Reclass) = NOL End Bal)

5,000,000 <BBal> + -1,024,000 <NOL Reclass> + 0 <DO> + 0<Bal O> = 3,976,000<EB>