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Jonathan Tierney
Jonathan Tierney, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 322
Experience:  Tax Accountant at Praxair, Inc.
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Our business, an LLC, showed a loss of $142,000.00 in 2015

Customer Question

Our business, an LLC, showed a loss of $142,000.00 in 2015 and owe no taxes. We owe $17,000.00 from 2014. My question is can we use that loss from 2015 against the 2014 taxes?
Submitted: 8 months ago.
Category: Tax
Expert:  Jonathan Tierney replied 8 months ago.
An LLC is by default a partnership if there is more than one owner. This means all the income, deductions, and credits pass on to the partners and any income taxes would be paid by them. Therefore a partnership never pays any income tax itself so any tax due would depend on your personal situation.
If your deductions exceed your income on your 1040, you have a net operating loss which you can carry back two years and forward 15 years until the loss is fully depleted.
You can file Form 1045 to carry back a net operating loss as soon as you file your return showing the loss for the year. Therefore your 2015 loss will be carried back to 2013 and then to 2014, and to 2016 forward until it is used up.
I hope this answers your question, please let me know if I can clarify anything or answer any additional questions.
Thanks, Jonathan
Customer: replied 8 months ago.
Thanks. That was very helpful.
Expert:  Jonathan Tierney replied 8 months ago.

Let me know if I can answer anything else. When you have a chance, please take a moment to rate my answer.

Thanks, Jonathan