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.

Resources

See Also

Further Reading

• Net Operating Loss (NOL) in the West's Tax Law Dictionary
• Net Operating Loss (NOL) in “A Dictionary of Taxation”