Net Operating Loss Deduction

[georgio50]

Wife and I file "married jointly," home and business together.  Wife has a solo law business which has a net operating loss.  She has NO personal income - her only income is derived from her law business.  However, my income, which far exceeds hers, partly supports the business, even though the law business is my wife's, and hers alone.  Given that our taxes are intermingled with TurboTax home/business, how is the NOL deduction determined related to her business?  Should it be calculated as if she was filing as an individual?  The NOL worksheet doesn't seem to work for our situation, because several data points are derived from our combined tax return, which includes my income and personal deductions.  HELP!

[ColeenD3]

What type of business is it? If it is a Sole Proprietorship, then the program has handled it correctly. Schedule C income is not separate from the rest of your income. Loss on Schedule C is not an NOL.

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.

Partnerships and S corporations generally cannot use an NOL. However, partners or shareholders can use their separate shares of the partnership's or S corporation's business income and business deductions to figure their individual NOLs.

NOL

[Anonymous]

her loss would first offset any other income on the return yours business income, wages, dividends interest.  then if there's still a loss there  would be a NOL.

so look at line 7 adjusted gross income if positive there is no nol.  

to check use 1045 schedule A 

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

generally an NOL exist if net business income is a loss and it exceeds net non business income

business loss $70,000   net non business income such as dividends, capital gains interest income less schedule A deductions  $50,000   nol $20,000  but this can be an oversimplification. 

[dawnmarks]

Thank you for your help!  We are a C Corp.  Were do I enter our NOL into Turbo Tax?

[JohnB5677]

The C Corp is a stand alone business that files it's taxes on a Form 1120.  The Net Operating Loss is carried internally to that entity.  You should get a 1099-DIV from the C-Corp.  They do not issue K-1s.

[Clayo]

On what 2018 tax form do I see whether or not I had a NOL Net Operation Loss?