There are few things that I like more than Net Operating Losses (NOLs), but it seems that the love is not widely shared. When the TCJA was passed, there were two notable changes to NOLs; the deduction got limited to 80% of taxable income, and it took away the NOL carryback.
Due to COVID, one tool used to help get money into taxpayers' pockets is to delay the change in tax law and allow NOLs from 2018-2020 to be carried back five years and suspends the 80% limitation, yay!
If you had a business loss from 2018, 2019, or 2020 you want to make sure you are talking with your tax preparer to ensure if it makes sense for you to carry these losses back to 2013, 2014, or 2015, respectively or if you should elect to carry the loss forward and use it to offset future income.
Whether you end up carrying back the loss or not, you want to make sure your preparer is aware of the tax law changes and advises you appropriately.
The treatment of NOLs varies by state; please speak with an advisor for your specific needs.