5-year NOL carryback of certain timber losses. A loss attributable to qualified timber property can be treated as a farming loss subject to a 5-year carryback period if
any portion of the
property is located in the Gulf Opportunity (GO) Zone, Rita GO Zone, or Wilma GO Zone. See Certain timber losses, later.
Gulf Opportunity (GO) Zone loss. A 5-year carryback period applies to the portion of an NOL that is a qualified GO Zone loss. In addition, the 90% limit on
the alternative tax NOL
deduction (ATNOLD) does not apply to such portion of the ATNOLD. See Qualified GO Zone loss, later.
Domestic production activities deduction not allowed in figuring an NOL. The domestic production activities deduction is not allowed in figuring your NOL.
Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of
missing children
selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children
home by looking at the
photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.
If your deductions for the year are more than your income for the year, you may have a net operating loss (NOL). An NOL year
is the year in which an NOL occurs. 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:
To have an NOL, your loss must generally be caused by deductions from your:
A loss from operating a business is the most common reason for an NOL.
Partnerships and S corporations generally cannot use an NOL. However, 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.
Keeping records.
You should keep records for any tax year that generates an NOL for three years after you have used the carryback/carryforward
or three years after
the carryforward expires.
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.
Comments and suggestions.
We welcome your comments about this publication and your suggestions for future editions.
You can write to us at the following address:
Internal Revenue Service
Individual Forms and Publications Branch
SE:W:CAR:MP:T:I
1111 Constitution Ave. NW, IR-6406
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.
You can email us at
*taxforms@irs.gov. (The asterisk must be included in the
address.) Please put “
Publications Comment” on the subject line. Although we cannot respond individually to each email, we do appreciate your
feedback and will consider your comments as we revise our tax products.
Tax questions.
If you have a tax question, visit
www.irs.gov or call 1-800-829-1040. We cannot answer tax questions at either
of the addresses listed above.
Ordering forms and publications.
Visit
www.irs.gov/formspubs to download forms and publications, call 1-800-829-3676, or write to the National Distribution Center at the
address shown under
How To Get Tax Help in the back of this publication.
