Is a net operating loss for tax purposes for a pass-through LLC, where biz deduct/exp exceed biz revenues or also includes individual income & deductions e.g. AGI is zero

[Don Riley]

I have always understood a net operating loss for individual tax purposes for pass-through entities is where business' completed schedule C has a negative value? Some guidelines seem to suggest that an NOL encompasses more than just the business but also includes individual income and deductions to calculate an overall NOL; which is correct, or as is all too common in the world of taxation, it depends!

[Stinkerbellkity · Accepted solution]

An NOL for an individual return encompasses all income and expenses on the return, not just the schedule C.  The Schedule C is not really a pass-through entity, it is a disregarded entity, meaning it is not separate from the taxpayer in any way.

[Anonymous]

an nol for individuals is the excess of business deductions and losses over business income reduce by the excess of nonbusiness income over nonbusiness expenses.  

if TT doesn't show the NOL here's the link to the IRS form - complete schedule A.  also on your 1040 if you have taxable income in either of the prior two years, you have to either carryback the nol to the earliest year or make an irrevocable election with the return to carryforward the NOL

https://www.irs.gov/pub/irs-pdf/f1045.pdf