Business Losses

If a business sustains an operating loss, you may be able to benefit from carrying the net operating loss (NOL) into a different tax year - a tax year in which you had or will have taxable income. This will allow you to take a deduction for the current loss against the different year's taxable income. Generally, an NOL can be carried back two years and foward 20 years. The NOL first offsets taxable income from the previous two years and the balance carried forward.