What is the name of your state? California. I am in the process of filing personal tax returns for tax years 2004-2006 (Form 1040). I have a Schedule C (cash method) loss of approximately $30,000 (3 years combined). I do not need the loss from 2004 (approx $12,000) as my tax liability for the year is zero without it. Can I carryforward this loss to 2005 (and 2006 if necessary)? If so, how do I do this? Do I still report the full loss on 2004 return, and if I am carrying forward do I record this on Schedule C or directly on to form 1040 in subsequent years? This seems to be a fairly straightforward question but I can't find a definitive answer online. Approximately one-half of 2004 loss was for start-up. Remainder of loss for three years was simply net operating loss; my Schedule C expenses exceeded my Schedule C income. Please help!