Net Operating Loss. A net loss for the tax year because of business or casualty losses. Taxpayers may use an excess loss of one year as a deduction for certain past or future years.
NET OPERATING LOSS. is experienced by a business when business deductions exceed business income for the fiscal year. For income tax purposes, a net operating loss can be used to offset income in a prior year, or a taxpayer can elect to forego the carry back and carry the net operating loss forward.
Net operating loss. The excess when total deductions for a taxpayer's trade or business activities exceed his or her gross income for a particular tax year. Also see “Income” and “Loss.
Net Operating Loss. A net loss for the year attributable to business or casualty losses. In order to mitigate the effect of the annual accounting period concept, the law allows taxpayers to use an excess loss of one year as a deduction for certain past or future years. In this regard, a carryback period of two years (three or five years for certain losses) and a carryforward period of 20 years is allowed.
Net Operating Loss. A net loss in a business that exceeds your other income for a year. The law allows losses to be carried back 2 years or carried forward 20 years to reduce taxes in those years.
(net operating loss) - (see tax loss carry-forward)
