net operating loss carryforwards
net operating loss carryforwards (NOL carryforwards)
USA
net operating losses (NOLs) can generally be carried back two years and carried forward up to 20 years to offset taxable income (IRC § 172). A taxpayer can make an election to waive the carryback period and use only the carryforward period. There are special rules that limit the use of NOL carryforwards after certain corporate ownership changes (see IRC § 382). A corporation generally does not assume the NOLs of another corporation except in certain tax-free reorganizations and subsidiary liquidations (see IRC § 381).

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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