Hey guys,
I'm no nol (net operating loss) pro by any means, so could use some help. In short, what are the mechanics of NOLs? Is the full NOL netted against pretax income to determine taxes to be paid? Seems too simplistic.
Here's a hypothetical situation I could use input on. Looking to calculate (1) net income/(loss) for years below, (2) remaining NOLs. If someone's willing to help w/ a model, that would be incredible:
European co with 30m euros in NOLs going into 2011
Corp tax rate: 35%
Est. pretax income (EBT) by year: 2011: -2m (confirming: negative) 2012: -17m (confirming: negative) 2013: 5m 2014: 42m
Thanks for the help!
EBT (30m) (2m) (17m) 5m 42m Tax 0 0 0 1.75m 14.7m Net Income/(Loss) (30m) 0 (8.5m) 5m 28.525m Ending NOL Balance (10.5m) (8.5m) (2.975m) (1.225m) 0
something like this?
Yeah, that's what I'm looking for! Thanks! What's the calculation for that? You got a model it seems if you were able to run that fast...
Also, wondering why you have the NOL balance becoming less beneficial between 2010 and 2011 even though EBT was negative.
it was a napkin math, sorry. don't even know if it's accurate. I must have screwed up lol, but i'm sure you get the point. I shouldn't have taken out 2m out of NOL balance to make the 2m loss zero sum in 2011
Ha! Well thank you for the help. Still looking for a model if anyone has it.
Ok, I'm all set. Built a model out from scratch. Worked great.
NOLs and cash taxes (Originally Posted: 10/05/2015)
Hi - looking at a company with years of net losses.
How do net operating losses (carry fwd) exactly impact cash taxes being paid in the future, ie what is the math / pls do you have an example?
If the company has not stated the exact amount of NOLs, but only gives 100m of deferred tax assets and 400m of deferred tax liabilities, how will one calculate the NOLs?
Thanks
Anyone pls?
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