I had a NOL this year, this is the first year of my business. Im going through the motions here in TurboTax but I don't see where to report and carry forward the loss?
I had a NOL this year, this is the first year of my business. Im going through the motions here in TurboTax but I don't see where to report and carry forward the loss?
Excess business losses for noncorporate taxpayers are limited for tax years 2021 through 2028. Generally, any disallowed loss is treated as an NOL carryover to later years. Also, excess business losses are now computed without regard to any deduction allowed under IRC section 172 or 199A and without regard to any deductions, gross income, or gains attributable to any trade or business of performing services as an employee. You can’t deduct net losses in excess of a threshold amount in the current year.
I just want to clarify that there is a big difference between a business loss and an NOL.
In most cases, a business loss is allowed to be used and will offset other income on the tax return.
A NOL means the entire tax return has a cumulative net loss. As was mentioned, TurboTax does not handle that. You would MANUALLY calculate the NOL and MANUALLY enter it into next year's tax return.