NOL carryforward
Varies
Can You Write Off NOL Carryforward?
Short answer: Net operating losses carry forward indefinitely but can offset only 80% of taxable income in a future year.
Business losses can offset other income, but excess business losses above about $256,000 single / $512,000 joint (2026) become a net operating loss carryforward limited to 80% of future taxable income.
Records to keep: Keep receipts or invoices, proof of payment, and a note of the business purpose for each expense.
NOL carryforward
Varies
General Business
Net operating losses carry forward indefinitely but can offset only 80% of taxable income in a future year.
Business justification
Net operating losses carry forward indefinitely but can offset only 80% of taxable income in a future year. Business losses can offset other income, but excess business losses above about $256,000 single / $512,000 joint (2026) become a net operating loss carryforward limited to 80% of future taxable income.
Category
- Tax Write-Off Rules