How are net operating losses from side businesses treated?
Net operating losses cannot be used to offset employee wages. For unincorporated businesses, if you operate more than one business, a net operating loss can be used to offset profits from any other type of business you operate. The remainder of the loss that could not be offset to other business profits can be carried forward to be used as a future offset for up to five years. Losses must be shown on Form IR, but are not deducted in the computation of your individual taxable income.
Net operating losses cannot be used to offset employee wages. For unincorporated businesses, if you operated more than one business, a net operating loss can be used to offset profits from any other type of business you operate. The remainder of the loss that could not be offset to other business profits can be carried forward to be used as a future offset for up to five years. Losses must be reported on Form IR, but are not deducted in the computation of your individual taxable income.
Net operating losses cannot be used to offset employee wages. For unincorporated businesses, if you operated more than one business, a net operating loss within the city can be used to offset profits from any other type of business you operate within the city. The remainder of the loss that could not be offset to other business profits can be carried forward to be used as a future offset for up to three years. Losses must be reported on Form IR, but are not deducted in the computation of your individual taxable income.
