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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Copyright © 2008 H&R Block. All Rights Reserved. Reproduced with permission from H&R Block Glossary
References in periodicals archive ?
In addition, federal, New York State, and New York City audit changes, with regard to net operating losses incurred prior to January 1, 2015, will have an impact on the PNOLC unless the statute of limitations for the 2015 tax return has expired.
eQ Bank, a wholly owned subsidiary of eQ Online, reported a total income of EUR3.4m and net operating loss of EUR0.5m in the first quarter of 2003.
With regard to losses incurred by a taxpayer in connection with the sale or rental of real estate, the allowance of the net operating loss depends upon the taxpayer's status as a dealer or an investor with regard to the property.(4) For example, if land is held primarily for investment rather than for sale in the ordinary course of business, the owner would be considered a real estate investor and ineligible for the net operating loss deduction.
Crossroads noted that the Plan is designed to serve the interests of all stockholders by helping to protect the company's ability to use its net operating losses to offset future tax liabilities and is similar to plans adopted by many other public companies with significant tax attributes.
For the twelve months ended December 31, 2011, EVBS has reported net operating income of USD1.8m, an increase of USD12.5m over the net operating loss of USD10.8m reported for the same period of 2010.
Differences between net operating losses for regular tax purposes and for the AMT should reflect any disallowances of net operating loss deductions under the 90% limitation provision.
170(b)(1)(A), an individual's annual itemized deduction for cash contributions to public charities cannot exceed 50 percent of the individual's contribution base (adjusted gross income, without any net operating loss carryback).
In general, a net operating loss (NOL) may be carried back two years and carried forward 20 years to offset taxable income in such years.
The Finnish stock exchange service provider eQ Online Corporation reported today (28 January) a net operating loss of EUR2m for the financial year 2002.
But some Board members believe that asset recognition for net operating loss carryforwards should be subject to a higher threshold because of the inherently greater uncertainties surrounding a company with a history of losses.
BANKING AND CREDIT NEWS-August 15, 2012--Merriman Holdings Posts net operating loss of USD 2.675m in Q2(C)2012 M2 COMMUNICATIONS http://www.m2.com
San Francisco-based New Resource Bank (OTCBB: NWBN) has reported a net operating loss of USD942,000 for the quarter ended June 30, 2011, compared with a net operating loss of USD251,000 for the quarter ended June 30, 2010.

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