Tax question - Schedule C?

Question

Hi,

I had a loss last year for my business and want to know if i can take that loss on my gains for this year? if so? Where on Schedule C do i do this?

thanks
Steven

Answer 1

The unused portion of a Net Operating Loss can be carried backwards or forward. If you want to carry your loss backwards, you are allowed to amend your previous years returns using form 1040X, or you can use form 1045.

Your Net Operating Loss (NOL) from last year is not reported on Schedule C.

To carry forward a NOL, show your figure as negative income on the "other income line" of Form 1040. Attach a sheet explaining the NOL, and giving complete details and the computation you used to figure your loss.

Here's a link: IRS Publication 536
http://www.irs.gov/publications/p536/ar02.html#d0e2251

There are times you should should use Schedule B, or Schedule D. Pub 536 has examples, and instructions for the worksheets.

Answer 2

Well, you can only claim the loss if is considered a carry over. You will need to speak with a tax professional in regards to your specific situation.

But normally speaking unless it was a major loss, natural disaster, etc ... you will not have a loss carry over.

Good Luck!

Answer 3

No, the 2 years are separate. Can't be done.