I think the accountant was mis-quoted.......CliftonLarson would not have allowed an accountant to have been interviewed who did not know the basics---------- therefore, the interviewer had to have screwed it up.

The article alludes to the fact that net operating losses under old law were included on Sch F, and thereby reduced self employment tax.

That is not correct.

NOL's (carrybacks or carryforwards) have always been offset against total taxable income, after computing the amount of itemized/standard deduction allowed to offset non-business income.  the deduction for the NOL is included on the personal 1040 return on line 21.

Nothing has changed that attribute under the new law.

With respect to the 80%/20% in the new law........only 80% of NOL's carried forward can be offset against the "base" income, as computed above........ie all income, not just farm income.

That means that the Sch F can show zero or a loss.........and a NOL carryforward can still be used against other income, such as a wife's off-farm salary............but only to the extent of the lower of 80% of the NOL....or the available income.

The 5-year carryback for farm income is dead under the new law.....now it is two years, with unlimited carryforward.........and, I was thinking there was a clause in there that in some situations the carryback was automatically eliminated, but I have not read the law for a while now.