What if I have $50,000 business loss, Is this treated as an ordinary loss? If yes, Suppose that I have $100,000 ordinary income this year. After all, do I have $50,000 taxable income? ($100,000 - $50,000)?

For next year, even though I used $50,000 to offset my ordinary gain, Do I still have $50,000 lookback for that year?

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In the context of US tax rules business losses are generally categorized as either ordinary losses o... View the full answer