If your deductions for the year are more than your income for the year (line 37 of your Form 1040 is a negative number), you may have a net operating loss (NOL). You can use an NOL by deducting it from your income in another year or years.

Examples of typical losses that may produce an NOL include, but are not limited to, losses incurred from the following.

• Your trade or business.
• Your work as an employee (unreimbursed employee business expenses).
• A casualty or theft.
• Moving expenses.
• Rental property.

A loss from operating a business is the most common reason for an NOL.

For details about NOLs, see Publication 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts. It explains how to figure an NOL, when to use it, how to claim an NOL deduction, and how to figure an NOL carryover.

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