Net Operating Loss


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Operating Loss

The state in which a company's operating expenses exceed its income for a given period of time, usually a quarter or a year. A company can carry back or carry forward operating losses for a certain number of years, reducing the company's tax liability. This is positive, but an operating loss still means that the company is losing money, which cannot be sustained over the long term.

Net Operating Loss (NOL)

A NOL is the net loss for the year attributable to business or casualty losses. Depending on the nature of the loss, it may be carried back for two, three, or five years before the year of the loss. The loss is subtracted from the income reported on the return and the unused loss can be carried forward for up to 20 years.
References in periodicals archive ?
Adding 2015 net operating loss with the PNOLC and reporting the total on line 16 of Part 3 of Form CT-3, and on line 35 of schedule B of Form CT-2
The company reported non-GAAP net operating profit of USD1,578,000, compared to USD1,402,000 non-GAAP net operating loss in 2008.
Section 172 generally permits a net operating loss (NOL) of any year to be carried back two taxable years and then carried forward 20 taxable years.
The Supreme Court said the Fourth Circuit was wrong in its holding that no part of the consolidated group's net operating loss qualified for the special 10-year carryback for product liability expenses.
Healthcare company TherapeuticsMD (NYSE MKT:TXMD) disclosed on Tuesday its net operating loss of USD54.
A net operating loss is also important to an entity in bankruptcy.
For the six months ended June 30, 2009, the company has reported a net operating loss of USD1.
As part of the OIC, the taxpayer might be asked to waive his or her right to carry forward net operating loss deductions.
In 1991, the Treasury Department and the Internal Revenue Service issued proposed regulations concerning the application of the SRLY rules to net operating loss and capital loss carryovers and carrybacks and built-in loss deductions.
P also argues that the AMT capital loss entitles him to an alternative minimum tax net operating loss (AMTNOL) deduction under Sec.
Net Operating Losses [AB 1774 (Lempert) Amends Rev and TC 17276 and 24416]: This bill was amended by the primary budget bill, AB 511, Burton, to increase the net operating loss carryforward from its current level of 50 percent to 55 percent, for income years 2000-02, and 60 percent thereafter.
The instructions for New Jersey franchise tax Form CBT-100S indicate clearly that if a corporate net operating loss is being carried forward from a previous year, it is first to be included as a deduction in Schedule A-1 of the current year's tax return, from which it will then be carried forward to Schedule A, Page 2, Item 38, as a part of the future net operating loss deduction.

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