Q. In a discussion of taxes the other night, net operating losses came up. What are they? SH, Alabama
A. I'm over-simplifying, but on your individual tax return, if your business expenses exceed your business income, you may have a net operating loss. Generally, you will almost always have negative Adjusted Gross Income when this is the case. There are special forms to fill out to properly compute an Net Operating Loss (NOL), and elections need to be made if you want to carry these losses forward rather than backward. This is definitely not a do-it-yourself tax return!