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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Further Reading

Related Entries in the American Tax Encyclopedia:

  1. Carryback
  2. Passive Income
  3. Long-term Gain
  4. Small Business Corporation Stock
  5. Non-passive Income
  6. Passive Income Generator
  7. Charitable Remainder Trust
  8. Net Operating Loss
  9. Net Operating Loss Deduction
  10. Ordinary Income
  11. Carry Forward
  12. Normal Operating Cycle
  13. Net Loss
  14. Operating Expense
  15. Private Operating Foundation
  16. Operating Interest
  17. Capital Loss
  18. Disaster Loss
  19. Loss
  20. Gambling Loss
  21. Hobby Loss
  22. Proof of Loss
  23. Loss Group
  24. Loss Carryback
  25. Loss Subgroup

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