Biz Write-Offs LogoBiz Write-Offs

Business losses (net operating loss)

Varies

Can You Write Off Business Losses?

Short answer: Yes: a business loss reduces your other income, and excess losses carry forward as an NOL.

NOL carryforwards offset up to 80% of taxable income; very large losses (roughly $250,000+ single, $500,000+ joint) are capped each year as excess business losses.

Records to keep: Keep receipts or invoices, proof of payment, and a short note of the business purpose.