20 CFR § 404.1085 - Net operating loss deduction.

---
identifier: "/us/cfr/t20/s404.1085"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "20 CFR § 404.1085 - Net operating loss deduction."
title_number: 20
title_name: "Employees' Benefits"
section_number: "404.1085"
section_name: "Net operating loss deduction."
chapter_name: "SOCIAL SECURITY ADMINISTRATION"
part_number: "404"
part_name: "FEDERAL OLD-AGE, SURVIVORS AND DISABILITY INSURANCE (1950-  )"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
cfr_part: "404"
---


# 404.1085 Net operating loss deduction.

When determining your net earnings from self-employment, you disregard the deduction provided by section 172 of the Code that relates to net operating losses sustained in years other than the taxable year.