When the NOL Allowance Rate is set to 100% and the Base NOL Allowance is set to 0, the NOL Reclass is 100% of the NOL Beginning Balance (100,000).

100,000 <NOL Beginning Bal> * (100%) NOL Allowance Rate = -(100,000)<NOL Reclass>

 

If the NOL Reclass is added to the Federal Taxable Income (Pre-NOL), the Federal Taxable Income (Post-NOL) is 0.

2,048,000 <TI Pre-NOL> + -100,000 <NOL reclass> = 1,948,000 <TI Post-NOL>

 

NOL Ending Balance

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

(100,000 <BBal> + 350,000 <DO> + 0<Bal O>) + (-100,000 <NOL Reclass>)  = 250,000 <EB>

 

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Note: The NOL Reclass takes the total NOL Beginning Balance because 100% of Federal Taxable Income (Pre-NOL) is greater than the available NOL Deferred Tax Asset.

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