Tax Cuts and Jobs Act Changes NOL Treatment

Tax Cuts and Jobs Act Changes Net Operating Loss (NOL) Treatment

Sole Proprietors and Business Owners of LLCs, Partnerships and S-Corporations are affected by these changes on their individual tax returns

NOL Carry Back is Eliminated

Most taxpayers no longer have the option to carry back an NOL arising from tax years ending after 2017. These NOLs can only be carried forward. Farming businesses are allowed an exception in some cases. Caution: if your business buys, sells or contract harvests farming related products but doesn’t grow or raise the plants or animals it isn’t included in this exception

NOLs generated in years beginning after 2017 are limited to 80% of Taxable Income

NOLs of Noncorporate Taxpayers Now Also Limited In Amount

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