Net operating loss

{
  "id": "MLC-T-LAW-003390",
  "term": "Net operating loss",
  "field": "Law",
  "definition": "The amount by which a taxpayer's allowable deductions for a tax year exceed gross income, as computed under Section 172 of the Internal Revenue Code. A loss arising after 2017 generally cannot be carried back, except for certain farming and insurance company losses, and instead carries forward indefinitely, with the deduction in any later year capped at 80 percent of taxable income. Losses from earlier years could be carried back two years and forward 20 years.",
  "abbreviation": "NOL",
  "url": "https://mlchart.com/terminology/law/net-operating-loss/"
}