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Business & farm
You can tell the difference between an NOL and At-Risk limitation.
What is a Net Operating Loss?
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.
You will get this screen in your program.
March 20, 2020
7:42 AM