How the Net Operating Loss Deduction Works After the TCJA

Lucas and Luna unpack the net operating loss (NOL) deduction under current law — how the Tax Cuts and Jobs Act eliminated NOL carrybacks, capped carryforwards at 80% of taxable income, and removed the two-year special rules. They walk through a concrete example: a boutique manufacturer that lost $500,000 in 2025 and how those losses offset future income under the 2026 rules. The episode also covers the lingering differences for farming losses and insurance companies, and why business owners should track NOLs even if they can't use them this year. A practical look at a deduction that changed dramatically after 2017 and remains a key planning tool for cyclical businesses. #NetOperatingLoss #NOLDeduction #TCJA #TaxCutsAndJobsAct #BusinessLosses #TaxPlanning #Carryforward #80PercentLimit #FarmingLosses #IRS #SmallBusiness #Manufacturing #TaxStrategy #Finance #Podcast #FexingoBusiness #BusinessPodcast #TaxTips2026 Keep every episode free: buymeacoffee.com/fexingo