Contents Important Change for 1999   ............... 1 Introduction  ........................................ 1 NOL Steps  ........................................... 2 How To Figure an NOL  ...................... 2 Illustrated Schedule A (Form 1045)  ............................. 3 When To Use an NOL  ........................ 7 How To Claim an NOL Deduction   .... 7 Deducting a Carryback  ................... 7 Deducting a Carryforward ............... 8 Change in Marital Status  ................ 8 Change in Filing Status  .................. 8 Illustrated Form 1045 ...................... 9 How To Figure an NOL Carryover  .... 11 Illustrated Schedule B (Form 1045)  ............................. 11 NOL Carryover From 1999 to 2000   .. 14 Worksheet Instructions  ................... 14 How To Get More Information   .......... 17 Index  .................................................... 18 Important Change for 1999 Photographs   of   missing   children. The Internal Revenue Service is a proud partner with the National Center for Missing and Ex- ploited   Children.   Photographs   of   missing children selected by the Center may appear in this publication on pages that would other- wise  be  blank. You  can  help  bring  these children home by looking at the photographs and calling  1–800–THE–LOST (1–800–843– 5678) if you recognize a child. Introduction If your deductions for the year are more than your income for the year, you may have a net operating loss (NOL). You can use an NOL by deducting it from your income in another year   or   years.   This   publication   discusses NOLs for individuals, estates, and trusts. It explains how to figure an NOL, when to use it, how to claim an NOL deduction, and how to figure an NOL carryover. To   have   an   NOL,   your   loss   must   be caused by one of the following kinds of de- ductions. •  From a trade or business. •  From your work as an employee. •  For casualty and theft losses. A loss from operating a business is the most common reason for an NOL. Partnerships and S corporations generally cannot use an NOL. But partners or share- holders can use their separate shares of the partnership's or S corporation's business in- come and business deductions to figure their individual NOLs. Department of the Treasury Internal Revenue Service Publication 536 Cat. No. 46569U Net Operating Losses • Trade or Business • Employee Business Expenses • Casualty and Theft For use in preparing 1999  Returns