Question on Business Loss:

Question on Business Loss: ***************************************
I have a small service business that has been profitable for the past few years. However, with the economy the way it is, I may have a loss this year.
I have 2 questions:
1. Can I carry this loss backwards to past years and set off against past years profits ? If so, how should I go about doing this ?
2. If the above is not possible.. How can I carry forward this loss to future years and set off against future years profits? If so, how can I do it ? Any forms to fill ?
Please let me know.
Thanks, Kim
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On Jan 27, 3:29 pm, snipped-for-privacy@yahoo.com wrote:

The term in question is "Net Operating Loss" or "NOL". Google for it. Basically, you can carry losses back 2 years and forward 20 years. In some cases, you can carryback 3, 5, or 10 years.
http://www.toolkit.com/small_business_guide/sbg.aspx?nid=P07_3130 http://www.irs.gov/publications/p536 /
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On Jan 27, 3:29 pm, snipped-for-privacy@yahoo.com wrote:

Your net operating loss (NOL) available for carryback or carryforward is calculated on Form 1045. It is not just the loss on your Schedule C; that loss will be reduced to the extent it is offset by other income.
You may want to get professional help with your 2009 taxes.
Katie in San Diego
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One additional point, the OP did not say whether or not this business is a corporation. That shifts things around a little.
Steve

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Steve Pope wrote: [snip]

He didn't even say he had an NOL. He merely said he had a business that was at a loss.
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