I have a NOL (Net Operating Loss) in 2016 for a business I own 1/3 of the shares. The business is an LLC. I am interested in using that loss to offset my PERSONAL taxes.
The business loss is first reported on your 2016 tax return. Any unused NOL will carry forward to your future tax returns and be applied against your ordinary income until completely used. If you used TurboTax last year, you're all set. TurboTax will automatically apply your NOL carry forward for you.
If you did not use TurboTax, follow these steps to enter your 2016 NOL:
- Click the Search Topics icon at the top
- Type NOL, select NOL Carryforward, click OK
- Enter your 2016 NOL as a positive number, click Continue
- Provide an explanation for this entry