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November 10, 2023
Question

Why no NOLs?

  • November 10, 2023
  • 1 reply
  • 0 views

My 1040 has no business or personal income currently, or in near future.  The business produced ($14k) in current year losses. I took the standard deduction of $12k.

Using IRS 536 and CA FTB 3805V worksheets indicate no NOLs were generated.

Can someone explain why no NOLs? At what level of loss would NOLs be generated?

1 reply

Employee
November 10, 2023

See https://www.irs.gov/publications/p536#en_US_2022_publink1000177329

 

You need to take into consideration your other income (and not consider your nonbusiness deductions) in the calculation.