New Business Owner

[DrewE83]

I'm going to have a net profit loss on a new single member LLC that I've created this year. Can I carry that loss forward to reduce tax liability next year?

[EleanoreS]

Good day DrewE83,

Congratulations on being a new business owner.

If you have a net loss from a single member LLC that is shown on Schedule C of your tax return, the loss will offset other income (wages, interest, dividends etc) on your tax return in the current year.  If after offsetting other income on your return, your AGI is a net loss, you may be able to carryforward, as a net operating loss, all or part of the loss from the business.  

Here is an IRS publication that will give you more information about NOLs 

Thank you for reaching out in the TurboTax Community.

[carolineb]

Hello again DrewE83,

I assume that you mean that you will have a net loss on your business for 2023. Business losses do not carry forward to the next taxable year, but they will offset any other type of income that you have in 2023 such as wage income, interest, dividends, unemployment, etc. 

If you have purchased any assets in 2023, be sure to depreciate them over the life of the asset rather than taking the bonus depreciation in the first year. That will reserve some of the expenses for future years to go against any future profits.