Recent Feedback
How do I carry a Schedule C net operationg loss forward for a sole prop.?
Optional Information: State/Country relating to question: Ohio
Hi and welcome to Just Answer!
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.
Complete your tax return for the year. You may have an NOL if a negative figure appears on the line below: Individuals — Form 1040, line 41. Use Form 1045, Schedule A, to figure an NOL.- www.irs.gov/pub/irs-pdf/f1045.pdfHere are instructions - www.irs.gov/pub/irs-pdf/i1045.pdf
Please see reporting examples in IRS publication 536 - www.irs.gov/pub/irs-pdf/p536.pdf
Let me know if you need any help or clarification.
you did not answer my question! My question is this please:
This is my question. It is pretty simple but I keep getting locked out. I have already joined for the month but no one is anwsering the question below. Please answer. How do I handle a Schedule C net operating loss for a sole prop.? I am filing my 2009 return. It is the first year in 26 years of business we have had a loss. I have both a $45,000 schedule C loss I listed on form 1040 Line 12 and $20,000 of income from an early withdrawal from a Fidelity tax sheltered annuity that I listed on 1040-Line 16BThat means I have a loss of $25,000 on form 1040 Line 22 right?With a loss going forward from line 22 what happens to my self employed health insurance deduction of $8280.00, my standard deduction of 11,400, exemptions of $10,950 and a child tax credit of 1000. They don't come into play do they? Does line 43 just stay a $25,000 loss?
What Happens Now?Your chat has ended, but you can still work with your Expert to get an answer to your question if you have not yet received one.Come back to this page at any time to see additional information from your Expert. You will also receive an email when your question is updated. If you want to send a message to your Expert, use the box below.If you have already received a satisfactory answer to your question, click the Accept button above. Experts are credited for each accepted answer they provide.
Relist: Incomplete answer.Answer this question....How do I handle a Schedule C net operating loss for a sole prop.? I am filing my 2009 return. It is the first year in 26 years of business we have had a loss. I have both a $45,000 schedule C loss I listed on form 1040 Line 12 and $20,000 of income from an early withdrawal from a Fidelity tax sheltered annuity that I listed on 1040-Line 16BThat means I have a loss of $25,000 on form 1040 Line 22 right?With a loss going forward from line 22 what happens to my self employed health insurance deduction of $8280.00, my standard deduction of 11,400, exemptions of $10,950 and a child tax credit of 1000. They don't come into play do they? Does line 43 just stay a $25,000 loss?
I do not see any indications that you saw the answer provided.I will simply repost it again. I also switched out of chat to simple Q&A mode - if that was an issue.
Please see reporting examples in IRS publication 536 - www.irs.gov/pub/irs-pdf/p536.pdfThat means I have a loss of $25,000 on form 1040 Line 22 right? - yes - that is correct.
In additional - you may not deduct self-employed health insurance costs if you do not have self-employed income.Let me know if you need any help or clarification.If any clarifications needed - post your replies here - do not post the same question again.
what do I do with the standard deduction and the personal exemptions. Do they make my loss larger or do they not come into play?
Yes - standard deduction and the personal exemptions will increase your NOL - which is coming from line 43. You will not be eligible for child tax credit because there is no earned income (unless you have another earned income that you did not mentioned).Use IRS publication 536 for 2009 - http://www.irs.gov/pub/irs-prior/p536--2009.pdf You will carryback and carryforward NOL - see page 7.
Experience: Taxes, Immigration, Labor Relations
Sorry - some corrections. The amount of standard or itemized deduction will increase your NOL - which is coming from line 41 , but the personal exemptions will not affect your NOL