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Level 1
posted Mar 31, 2023 4:33:56 PM

Schedule C NOL

Can a 2020 schedule C loss still be carried back 3 years? Could it originally have been carried back 5 years?

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1 Best answer
Expert Alumni
Mar 31, 2023 5:40:28 PM

Yes, in 2017 the Tax Cuts & Jobs Act disallowed carryback of NOL's. You are correct that originally it could be carried back five years.  The 2017 TCJA also limited NOL deductions to 80% of taxable income.

 

Here's detailed info on NOL's from IRS Pub. 536.

 

@macpham 

 

 

3 Replies
Expert Alumni
Mar 31, 2023 5:40:28 PM

Yes, in 2017 the Tax Cuts & Jobs Act disallowed carryback of NOL's. You are correct that originally it could be carried back five years.  The 2017 TCJA also limited NOL deductions to 80% of taxable income.

 

Here's detailed info on NOL's from IRS Pub. 536.

 

@macpham 

 

 

Level 15
Mar 31, 2023 7:07:00 PM

just because schedule C shows a loss doesn't mean you have an NOL. you should use form 1045 Schedule A to compute it

in short, an NOL is the excess of business losses or items of business income reduced by the excess, if any, of nonbusiness income over nonbusiness deductions.

 

Level 1
Mar 31, 2023 8:56:06 PM

Agreed - it is an NOL