Publication 536 |
2000 Tax Year |
Introduction
If 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:
- How to figure an NOL,
- When to use an NOL,
- How to claim an NOL deduction, and
- How to figure an NOL carryover.
What is an NOL?
Examples of typical losses include, but are not limited to, losses
incurred from:
- Your trade or business,
- Your work as an employee (unreimbursed employee business
expenses),
- Casualty and theft losses,
- Moving expenses, and
- Rental property.
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.
- Bankruptcies. See Publication 908, Bankruptcy Tax
Guide.
- NOLs of Corporations. See Publication 542,
Corporations.
- Specified liability losses. See the Form 1045
instructions.
Comments and suggestions.
We welcome your comments about this publication and your
suggestions for future editions.
You can e-mail us while visiting our web site at
www.irs.gov/help/email2.html.
You can write to us at the following address:
Internal Revenue Service
Technical Publications Branch
W:CAR:MP:FP:P
1111 Constitution Ave. NW
Washington, DC 20224
We respond to many letters by telephone. Therefore, it would be
helpful if you would include your daytime phone number, including the
area code, in your correspondence.
Previous| First | Next
Publication Index | IRS-Forms Main | Home
|