Originally Posted by gunny2005
I have a painting business and was doing a big job for a General Contractor. While doing tge job the General Contractor backed out and my company took a loss of $27,300.87. When filing my taxes this year how do I deduct this loss or what can I do to help with this loss? Any help would be appreciated. Gunny
you can not deduct the lossof 27300.87 on your 2014 return as youhave no income generated. Net Opersting business Lossess come up when you have more tax deductions than taxable income. You can figure this out easily by completing your tax return. You may have an NOL if you have a negative number on the line for taxable income before you deduct your personal exemptions on line 41 on Form 1040.so, If your business losses are more than your total income for the year, you can use the excess loss to lower your income and reduce your taxes in another year. For example, if you have an NOL in 2014, you can use it to lower your taxes in 2002 or 2013, or possibly in 2015 and later. There are two ways to claim a refund for prior years’ taxes: You can file IRS Form 1040-X within three years, or you can seek a quicker refund by filing IRS Form 1045. If you file Form 1045, the IRS is required to send your refund within 90 days. However, you must file Form 1045 within one year after the end of the year in which the NOL arose,in your case by Dec 31 2016. So to claim your losses, you must file your 2014 return .