Can the losses I incurred in a previous year be deducted from my taxable income during the following year?

My realized net loss by December 31 is -$35,000. My understanding is that I will have zero taxes to pay for 2017 because I did not make any money. However, if I earn $100,000 in net profits in 2018, is it possible for me to deduct that $35,000 loss from last year on my taxable income? 

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December 2017
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The short answer is yes - the long one is it all depends.  If you are referring to capital gains and losses then the answer is yes.  Under your scenario, you will have up to a 35,000 capital loss carryforward which can be applied against capital gains going forward until it is used up.  If you do not have 32,000 in capital gains in 2018 and 3,000 of ordinary income, you would apply 32,000 of the carry forward and have zero capital gains, and then apply the remained of the carry forward against ordinary income.

If you are referring to a business loss, Net Operating Loss, then you may carry that loss backward two years or carry it forward.  If you do not wish to apply it backward, you must make a timely election when you file your 2017 tax return.  Talks with a tax pro on that issue.

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