How to Compute a Net Operating Loss
Example of NOL Computation
The facts for tax year 2013:
- You're single, no dependents, under 65
- Annual salary $5,000 from a part-time job
- Annual interest income $1,000
- Net nonbusiness capital gain of $800
- Net business loss of $15,000
- Itemized deductions of $7,400
|5||Adjusted Gross Income||($8,200)|
|9||Adjustments for Disallowed Items:|
|11||Disallowed excess nonbusiness deduction (see computation below)||5,600||$9,500|
|12||Net Operating Loss||($10,000)|
|Net capital gain||800||$1,800|
|Disallowd Excess Nonbusiness Deductions||$5,600|
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- Return to the Business Deductions Table of Contents to find related links