Net Operating Loss

Net Operating Loss

About Net Operating Loss:

Net Operating Loss (NOL) was the excess of allowable deductions over gross income with certain specific adjustments set forth in the Internal Revenue Code, which are generally designed to limit the net operating loss deductions of individual taxpayers to business losses. Amounts by which business expenses exceed income in a tax year. A trader's operating losses constitute broadly the excess of his operating expenditure over receipts from his operations. A corporation that incurs an NOL pays no tax in the current year and can claim a refund for 3 prior years' taxes paid, then carry over the remaining NOL to as many as 15 future years. Net operating losses from the taxpayer business generally are carried back for two years (triggering a refund of taxes paid) unless the taxpayer specifically elect to carry them forward to future tax years. A special provision that allowed 2008 and 2009 losses to be carried back for as many as five years was not extended. Net operating losses from the taxpayer business generally are carried back for two years (triggering a refund of taxes paid) unless the taxpayer specifically elect to carry them forward to future tax years. A special provision that allowed 2008 and 2009 losses to be carried back for as many as five years was not extended. Former IRC (check if this IRC provision is current here) §172.


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