Any "excess business loss" (EBL) above those amounts is carried forward, and becomes a net operating loss in the following year. But if guaranteed payments and Schedule C income are business income, what do we do about the above-the-line deductions associated with those types of business income? It is possible that capital losses can be business losses because they are expressly dealt with in the NOL context. So I have $200,000 of net business income and $800,000 of loss; so I have a net loss of $600,000 for the year. Does that mean I allow $700,000 of the short term capital loss (bringing my net business loss to $500,000) and turn $100,000 of the capital loss into an NOL?

Source: Forbes March 09, 2018 15:39 UTC