Net Operating Loss Carryforward
/ˌnet ˈɑpəreɪtɪŋ lɔs ˈkæriˌfɔrwərd/
Definitions
- (n.) A tax provision allowing a business to apply a net operating loss to future taxable profits to reduce tax liability.
The company utilized its net operating loss carryforward to offset taxable income in subsequent years.
Forms
- net operating loss carryforward
Related terms
See also
Commentary
Typically specified in tax codes, net operating loss carryforwards must comply with statutory time limits and carryforward rules to maintain eligibility.
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