how can I tell how much of my business expense deduction will roll over into 2025?

[Mike1127]

In my 2024 tax return, I showed a $7000 loss on Schedule C. I also had income from social security, retirement accounts, and royalties. I ended up owning no Federal or state income tax and owed no self-employment tax.

I'd like to know if all of that $7000 was deducted fromother income sources, or if there's any "left over" that will roll over into 2025. That is, could be reported as a business loss in 2025. How can I determine that?

[AmeliesUncle]

Not counting Social Security, were your retirement withdrawals and royalties over $7000?  If so, your Schedule C loss would have offset that income and none of it would be carried to 2025.

If that other income was less than $7000, you may have a "Net Operating Loss" (NOL).  TurboTax does NOT calculate an NOL, so you would need to manually calculate that to manually carry over to 2025 (or go to a tax professional).

[Mike1127]

I don't know the exact numbers off the top of my head, but the other income sources were roughly $7000 or maybe a little less. Is there any place in Turbo Tax I can go to see the numbers I need to be comparing to determine a NOL (i.e. net business losses from all sources in one location, and income in another location, so that I can just compare the two numbers)?

For planning purposes I need to be really sure about this so maybe I can take my tax return to a professional to ask the question about NOL. But if it's easy to tell myself, that would be preferable.

Thanks,

Mike

[Mike9241]

you can use IRS form 172 which Turbotax does not currently support. the instructions are also available on this webpage. 

https://www.irs.gov/forms-pubs/about-form-172 

[AmeliesUncle]

If line 11 of Form 1040 is a positive number, you don't have a NOL.  If it is negative, you might have one.

However, if the NOL is small, it likely won't be worth the effort and/or expense to carry it forward.