NOL Tax Loss Carryforward

What is an NOL / Tax Loss Carryforward?

Loss Carryforward is an accounting concept related to net operating loss. It is simply the procedure by which a net operating loss is carried forwards to a future period to reduce the amount of tax due.

For example, if a company has a net operating loss in 2011 but expects to be profitable in 2012, it can carryforward the 2011 loss to reduce the tax it has to pay in 2012.

 

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