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| Normally, a business loss reduces your other taxable income in the year that it occurred, and there is no carryover. |
Publication 536 explains how to figure a net operating loss when deductions exceed income for individuals, estates and trusts. |
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| If your sole proprietorship reported on schedule c ends up with a net loss, you can generally subtract that loss from your other income on your federal tax return. |
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In this case, the irs allows you to carry the excess loss forward to future years, known as a net operating loss nol carryover. |
| While the nol can be carried forward indefinitely, the nol net operating is limited to 80 percent of taxable income. |
Publication 536 explains how to figure a net operating loss when deductions exceed income for individuals, estates and trusts. |
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you cant choose to claim your schedule c losses in a different year. |
you can use an nol by deducting it from your income in another year or years. |
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