Sch-C loss. how to carry over? not report deduction that created loss and put on next year tax or is there a place to put it so we can carry over later. pre SE-tax

[captw]

Home and Business 2017

Loss on Sch-C, this year, that I want to hold over for the following year.

Renovations on our shop, large equipment repairs there are several that could have caused the negative.

Tax benefit of the negative will be better on next years taxes if it falls Pre SE-tax.

Do you just not take deduction that throws you NOL and take it the following year? Or is there a form you show the loss and can enter to carry this loss forward?

[IsabellaG]

You can't choose to claim your Schedule C losses in a different year. Normally, a business loss reduces your other taxable income in the year that it occurred, and there is no carryover. 

But you could have a carryback/carryover if you had an actual Net Operating Loss (NOL). If you had a negative taxable income in 2017 before considering personal exemptions, you might have had an NOL for 2017.Generally, if you have an NOL for a tax year ending in 2017, you must carry back the entire amount of the NOL to the 2 tax years before the NOL year (the carryback period), and then carry forward any remaining NOL for up to 20 years after the NOL year (the carryforward period). You can, however, choose not to carry back an NOL and only carry it forward.

 See this link to IRS Publication 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts. The calculation is one that you will have to do on your own, using IRS Form 1045. It doesn't automatically carry forward or back to other tax years.

In any case, you would start this calculation by claiming all of your allowable expenses in the year in which they were incurred, 2017.

To find the NOL section of TurboTax, type NOL in the search box in the upper right hand corner of your screen. Then click "Jump To" to be directed to that section. See the screenshot below. 

[casaferg]

What form is used to carry forward Schedule C loss to following years

[Critter-3]

There is no form to carry Sch C losses forward since you cannot do this.  Either you will have an NOL on the form 1040 or you can slow down the depreciation/179 deduction/bonus depreciation on the Sch C.

[Mike9241]

a schedule C loss may be utilized in the year of the loss.  you have to figure out whether you had a Net Operating Loss for the year of the Schedule C loss. Use form 1045 schedule A to calculate whether or not you have an NOL. if so that gets reported on the following year on the Turbotax carryover worksheet line 14 which will carry the NOL to schedule 1 Line 8. 

https://www.irs.gov/pub/irs-pdf/f1045.pdf 

note in order to carry forward an NOL from 2019 you had to make an election on your timely filed 2019 return to forgo the NOL carryback. if you didn't and have an NOL for 2019 it must be carried back 5 years to 2014. any not utilized in 2014 gets carried forward to 2015 and so on. since Turbotax no longer supports the app for 2014 - 2017. so you would need to seek out a tax pro if this is your situation.

[mahimahimom]

NOLs operating losses -  CARES ACT - carryback 5 years

1)))))) It's really darn annoying that there is not even a Tax Year 2020 Form 1045 

that even fits the 5 carryback years because of the CARES ACT 

on the From 1045 itself.

There are only 3 columns for 3 carryback years on Form 1045.

Pretty ridiculous.

How much effort would it have been for the IRS to come out with one measly ONLINE PDF

that has 5 columns?

For 5 carryback years?

I stared at that FORM 1045.  It would fit five (double) columns. 

Now millions of people have to deal with those 3 limited columns,

when it would have taken 1 little person at the big IRS to adjust that form real quickly.

Geez, most of us can do it in an hour in Excel, complete with pretty colors.

Very little work, it would have cost the IRS.  

How much time and energy lost for everyone, millions, having to fill out two Form 1045s 

because of the CARES act!

All that double info filling out twice because there is not 1 proper form.

It all seems badly orchestrated by IRS implementing this CARES act.

That TY 2020 with so many of us having losses / almost lost their business or are still going to ....

There shoulda been help.  

This makes it surely an paperwork nightmare of sorts.

2)))))) The opt out / waive the carry back 5 years should have run out much later than October 15, 2021.

That's the standard deadline to waive carry backs for a tax year prior.  

Who was still thinking about that in 2020 and 2021, that there was a deadline running that didn't run before?

Pre CARES act there was no carrying back, only forward.

Very aggravating!

[Mike9241]

agree about the 1045 but you can file 1040-X for each year - a pain I know.

[Critter-3]

Once you carryback 5 years it is possible that the loss would be used up in less time so you will not need the extra columns ... from the 1045 instructions :

 If you carry back any portion of an unused NOL or general business credit to tax years before the 3 years preceding the 2020 tax year, you may need to use additional Forms 1045. Complete lines 1 through 9 and Schedule A on only one Form 1045 for the earliest preceding tax years. You must sign this Form 1045 but don’t need to sign the other Forms 1045.

https://www.irs.gov/forms-pubs/about-form-1045

[Carl]

Something that caught my eye in the original post.

Renovations on our shop

Depending, the cost of renovation may not be deductible per-se. This cost may have to be capitalized and depreciated over time. How you deal with that more specifically, depends on if you own the shop, or are renting the shop.

[tagteam]

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@Carl wrote:

Something that caught my eye in the original post.

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The OP mentioned they were using Home & Business 2017, so that post is literally ancient.