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)
Thanks for the help!