For tax purposes:
If your
casualty or
theft loss deduction is more than your
income; you may have a net operating loss(NOL). You can use a NOL to lower your
taxes in an earlier year, allowing you to get a
refund for taxes you have already paid. or, you can use it to lower your taxes in a later year. You do not have to be in
business to have an NOL from a casualty or
theft loss.