I have a net operating loss for my LLC, but married, filing jointly, with net positive income. Does NOL apply only if business operating expenses surpass total income?

Forum|Forum|7 years ago
June 6, 2019
1 reply
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I have a sole member LLC which operated in 2016 with a net loss. I am married, filing jointly. My husband's income is greater than the net loss from my business, meaning that in total we are at a (low) net positive income.

Can I, and should I, file for Net Operating Loss? Or is that only applicable when the entire 1040 income amount (Line 41) is a net negative?

Thank you!

Best answer by DS30

Yes, you are correct. You cannot claim a personal NOL related to your LLC losses if you are able to offset your LLC's net losses (as a disregarded entity on Schedule C) against other ordinary income (like your husband's wage income).

D

DS30Answer

Employee

Yes, you are correct. You cannot claim a personal NOL related to your LLC losses if you are able to offset your LLC's net losses (as a disregarded entity on Schedule C) against other ordinary income (like your husband's wage income).

I

Inspiredhealthllc

My husband also owns an LLC and will likely report a net loss of approx $5,000 this year. I on the other hand will report $78,000 in gross income for our household. In this situation, would my husband report a taxable income of $0 for this year?

Critter

Employee

@Inspiredhealthllc

You have to stop thinking his & mine ... on a joint return there is only ours. So his LLC income is reported on the Sch C on the same form 1040 as all your other joint income and the Sch C loss is netted against the other income .... just review the form 1040 to see how this happens naturally.