You'll need to sign in or create an account to connect with an expert.
Tax situations TurboTax does not handle includes NOL. Read IRS Publication 536 Net Operating Losses (NOLs)
Excess business losses for noncorporate taxpayers are limited for tax years 2021 through 2028. Generally, any disallowed loss is treated as an NOL carryover to later years. Also, excess business losses are now computed without regard to any deduction allowed under IRC section 172 or 199A and without regard to any deductions, gross income, or gains attributable to any trade or business of performing services as an employee. You can’t deduct net losses in excess of a threshold amount in the current year.
Be sure you are entering preliminary expenses for amortization and following the rules for when to deduct what. See Small Business and Self-Employed Tax Center
I just want to clarify that there is a big difference between a business loss and an NOL.
In most cases, a business loss is allowed to be used and will offset other income on the tax return.
A NOL means the entire tax return has a cumulative net loss. As was mentioned, TurboTax does not handle that. You would MANUALLY calculate the NOL and MANUALLY enter it into next year's tax return.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
ambientminds
New Member
JERisBRISK
Level 1
dmclean93
New Member
M-love bug
New Member
Vocstra
Level 2