Index/Topics/Net Operating Loss Carryforwards

Net Operating Loss Carryforwards

Rules and regulations regarding net operating loss carryforwards, including changes made by the 2017 Tax Cuts and Jobs Act and the CARES Act

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Jan 31, 2026

How do net operating loss carryforwards and other deductions legally reduce an individual’s federal income tax to zero?

(NOL) carryforwards and ordinary deductions reduce an individual’s taxable income—the base on which is calculated—potentially driving tax liability to zero, but current law places hard limits on how m...

Feb 2, 2026

How do net operating loss carryforwards work and how long can they reduce taxable income?

(NOL) carryforwards let a business or non‑corporate taxpayer apply a prior year’s deductible losses against future to reduce taxes; under current federal law most NOLs can be carried forward indefinit...

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Net Operating Loss Carryforwards

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How do net operating loss carryforwards and other deductions legally reduce an individual’s federal income tax to zero?

How do net operating loss carryforwards work and how long can they reduce taxable income?