[ Click for Text Only Version ]

Introduction If your deductions for the year are more than your income for the year, you may have a net operating loss (NOL). You can use an NOL by deducting it from your income in another year or years. This publication discusses NOLs for individuals, estates, and trusts. It explains how to figure an NOL, when to use it, how to claim an NOL deduction, and how to figure an NOL carryover. To have an NOL, your loss must be caused by one of the following kinds of deductions. From a trade or business. From your work as an employee. For casualty and theft losses. A loss from operating a business is the most common reason for an NOL. Partnerships and S corporations generally cannot use an NOL. But partners or shareholders can use their separate shares of the partnership's or S corporation's business income and business deductions to figure their individual NOLs. What is not covered in this publication. The following topics are not covered in this publication. Bankruptcies. See Publication 908, Bankruptcy Tax Guide. NOLs of Corporations. See Publication 542, Corporations. Specified liability losses. See the Form 1045 instructions.

Tax Stats | Tax Info For You | Tax Info For Business | Electronic Services Taxpayer Help & Ed | Tax Regs In English | IRS Newsstand | Forms & Pubs What's Hot | Meet The Commissioner | Comments & Help | Site Tree