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I've heard that in general only businesses can carry tax loss forward (though in certain cases individuals can, too). Can someone filing taxes as an individual because they have a business which is a disregarded entity (a single member LLC) carry a loss?

(Also, what is this 80% limit? If there is a net loss, 80% of it will always be higher than 80% of the profits since the profits are 0!)

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  • It is a disregarded entity.
    – minou
    Apr 21, 2020 at 20:10
  • @gaefan Thanks. Corrected now. It took me a moment to realize what you meant. At first I thought you were telling me that a single member LLC is a disregarded entity :)
    – ispiro
    Apr 21, 2020 at 20:17
  • Well, that too. A single member LLC is usually a disregarded entity unless you've opted for S-corp taxation.
    – minou
    Apr 21, 2020 at 21:49
  • FOR US (implied by your tags though not stated) YES an individual with a loss from a disregarded LLC (and some other sources) can carry it forward with some limitations. Formerly you could elect to carry back 2 years before carrying forward, but that has been repealed. See IRS publication 536 (also available in PDF, which I personally prefer, by navigating up one level at the top of the page)
    – dave_thompson_085
    Apr 22, 2020 at 4:42

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