If you have a business loss that can’t be used in the year it occurred, you may be able to carry it forward as a net operating loss (NOL) to offset 80% of taxable income in future years. But you need proof (records) to back up the write-off. A CPA who lost a fortune in Fuddruckers restaurant franchises was denied net operating loss carryforwards. The Tax Court said her testimony and prior tax returns weren’t proof of losses. The fact that the IRS didn’t challenge NOL carryforwards in earlier years is no defense. #IdeaoftheDay