All 2020 returns have been updated to cater for loss carry-back.
If you're claiming a loss carry-back from 2021, in the 2020 return, enter the amount being claimed in the Losses brought forward section:
- We've added a new Loss carry-back from 2021 field to the Loss brought forward section.
- The amount of losses claimed can be loss carry-back and/or loss brought forward.
- The loss carry-back isn't included as a separate amount on the IRD Summary or in the E-Filed return. Only the loss claimed is sent to IR.
- The Client Tax Statement will display the loss carry-back separately.
- If integrated with Tax Manager, this amount will populate the Loss carry-back from 2021 field in the losses section of the 2020 year. The loss carry-back amount isn't updated to Tax Tracking.
If you claimed a loss carry-back from 2020 in the 2019 return, it needs to be offset in the 2020 return.
- If integrated with Tax Manager, enter the loss-carry back from 2020 in the losses section of the 2019 year. The value entered will populate the new field in Other Income. The field is not editable when integrated to Tax Manager.
- If integrated with Tax Tracking, enter the loss-carry back from 2020 directly in the new Other Income field.
- The IRD Summary and the E-Filed return will include the loss carry-back to 2019 as part of the Other Income amount.
- The Client Tax Statement will print the loss-carry back to 2019 separately.
The IR7 return has the following differences to the other return types:
- Both the Loss carry-back to 2019, and the Loss carry-back from 2021 fields are in Other Income.
- When distributing to the partners or owners, the loss carry-back from 2021 is part of KP26I Other passive income. The loss carry-back from 2021, should be shown in the same field in the receiving return. No change has been made to the distribution, so if KP26I has any loss carry-back from 2021, it will post to Other Income in the receiving return. In the receiving return you need to remove the amount from Other Income and enter it in the Loss carry-back from 2021 field. Warnings have been added in the IR7 and receiving return to remind you to do this.
An election must be made in myIR for loss carry-back before making the claim in the return, including for the partners or owners in an IR7.
Refer to Inland Revenue for more information on claiming the loss carry-back.
The 2020 return has fields to offset any loss carry-back to 2019, but the 2019 return hasn't been updated for the loss carry-back. If you need to file or amend a 2019 return with a loss carry-back from 2020, you need to do it via myIR.