IntroductionIf your deductions for the year are more than your income for the year, you may have a net operating loss (NOL). You can use an NOL by deducting it from your income in another year or years. What this publication covers. This publication discusses NOLs for individuals, estates, and trusts. It covers:
To have an NOL, your loss must generally be caused by deductions from your:
A loss from operating a business is the most common reason for an NOL. Partnerships and S corporations generally cannot use an NOL. But 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. What is not covered in this publication? The following topics are not covered in this publication.
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