A net operating loss refers to a tax year in which a business's allowable tax deductions exceed its taxable income. In simpler terms, you had more expenses than you actually had revenue. However, there is a loophole: U.S. Code IRC § 172 allows businesses to use that loss as a carryover toward future tax years or as a carryback to recoup money from previous tax years. Calculating and taking advantage of an NOL can be hugely beneficial to your business if you need money fast. An NOL can offer you a quick tax refund, but you must be up to date on the rules and regulations of this tax relief.
Damage from natural disasters, fire, accidents, thefts or vandalism is often tax-deductible if the loss is major and not covered by insurance or other reimbursements. If your area receives a federal disaster designation, you may be able to claim the loss sooner. If you suffer damage to your home or personal property, follow these IRS-provided tips to help you determine what events get you a tax break:
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