Business & farm

A net operating loss (NOL) results from the situation in which a business or individual has more allowable tax deductions than it has taxable income. In this case, the business has negative income, or a net operating loss. That's the bad news. But the good news is that you may be able to take that net operating loss and move it to a tax year in which you had a profit (actually, net operating income) in future years.

To have an NOL, your loss must generally be caused by deductions due to expenses from: 

• A business (but see restrictions on losses depending on types of business below)
• Losses due to casualties or theft
• Moving expenses, or
• Rental property. 

If you get the screen below, the program has calculated more loss than income. You can look on your 1040 to see it.

If you say yes, then you will be informed that you can carry it forward to 2020.