Net Operating Loss (NOL)

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Net Operating Loss (NOL)

Description and Definition of Net Operating Loss (NOL)

A net operating loss is experienced by a business when it's deductions exceed it's income. For income tax purposes a net operating loss can be used to offset income in a prior year. An NOL can be carried back for the last 3 years and carried forward as a deduction from future income for 15 years until completely used.


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