Net operating loss (nol) - sustany/dvg GitHub Wiki

A net operating loss occurs when a company�s deductions exceed their gross income for a given year. The Internal Revenue Code � 172(c) defines net operating loss as �the excess of the deductions allowed by this chapter over the gross income.� � 172(b) allows taxpayers to carryback and carryover the net operating loss amount as a deduction to offset their tax liability in those other periods. However, 172(a) limits the deduction to 80% of taxable income.