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tomccoa
New Member

Can I claim a Net Operating Loss on my federal income tax for my LLC established in 2018 where I only had LLC expenses (already listed on Schedule C) and no LLC revenue?

We are filing jointly and both have incomes from pension plans and social security.  The LLC is newly established in 2018 and separate from those sources of income.  I am the sole owner and proprietor of the LLC as a self-employed person.  I have no employees. 

1 Reply
MinhT
Expert Alumni

Can I claim a Net Operating Loss on my federal income tax for my LLC established in 2018 where I only had LLC expenses (already listed on Schedule C) and no LLC revenue?

The loss from your LLC will first be used to offset any other ordinary income you may have. If there is an excess loss, you can report a Net Operating Loss on your 2018 tax return. 

If you have a Net Operating Loss (NOL), that loss can be carried forward for future years. The option to carry it to the last 2 years has been eliminated by The Tax Cuts and Jobs Act, except for farming losses.

Please read this IRS document for more information:

https://www.irs.gov/pub/irs-pdf/p536.pdf

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