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Investors & landlords
A net operating loss (NOL) is carried forward and used to absorb taxable income from any source on your personal tax return form 1040. Any unused loss is carried forward to the next year after it is used to reduce your current year taxable income to zero.
The NOL cannot be used to just offset rental income, it would automatically be applied to all taxable income on the current year tax return.
A passive loss from a rental activity is not a NOL, it does not get subtracted from ordinary income, so it would not appear on a form 1040, so the NOL would not be associated with it. A passive loss from a rental activity would appear on form 8582 which gets filed with your tax return for any year you generate one or have one carried over from the previous year.
Any year you have a NOL carryover from the previous year, you would list it on your tax return.
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