What would a net operating loss include?

[ToddL]

A net operating loss includes company/business  tax deductions  that are greater than its  taxable income .

A net operating loss (NOL) is a loss taken in a period where a company's allowable tax deductions are greater than its taxable income. When more expenses than revenues are incurred during the period, the net operating loss for the company can generally be used to recover past tax payments. The reasoning behind this is that corporations deserve some form of tax relief when they lose money, so they may apply the net operating loss to future income tax payments, reducing the need to make payments in future periods.

[wantengirl21]

Need to know if i take this loss on my business. I am reading other questions people have asked and it says that if your Schedule c has a loss it is not the same thing?  The explanation however in turbo tax help says that it is. My 1040 shows a business loss line 12 and also on my schedule c line 31 i have checked 32a and it told me i need schedule se and form 6198? 

[rjs]

A business loss on Schedule C does not necessarily produce a Net Operating Loss (NOL). An NOL is an overall net loss on your tax return, not just on Schedule C. TurboTax will not do the calculations that are necessary to determine whether you actually have an NOL. You have do it yourself. See IRS Publication 536 for details on NOLs. There is a worksheet in Publication 536 for calculating whether you have an NOL. You will also need Form 1045 and its instructions. Here are links to download those items from the IRS web site.

Publication 536
Form 1045
Form 1045 instructions