Every tax year is different. Just because you never had it before, that does not mean it is not valid this year. This works for your benefit if it does apply to you.
Please see PUB 536 for more information.
If your deductions for the year are more than your income for the year, you may have a net operating loss (NOL). An NOL year is the year in which an NOL occurs. You can use an NOL by deducting it from your income in another year or years.
What this publication covers.
This publication discusses NOLs for individuals, estates, and trusts. It covers:
How to figure an NOL,
When to use an NOL,
How to claim an NOL deduction,
How to figure an excess business loss, and
How to figure an NOL carryover.
To have an NOL, your loss must generally be caused by deductions from your:
Trade or business,
Work as an employee (although not deductible for most taxpayers for 2018 through 2025),
Casualty and theft losses resulting from a federally declared disaster,
Moving expenses (although not deductible for most taxpayers for 2018 through 2025), or
Rental property.
A loss from operating a business is the most common reason for an NOL.
