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Tax credit when corporation has loss?
Posted by admin on Jan 12th, 2009
cleanair asked:
What happens if a publicly held corporation suffers a loss for a year. Does that loss get deducted from the taxable income of the following year? I am confused.
What happens if a publicly held corporation suffers a loss for a year. Does that loss get deducted from the taxable income of the following year? I am confused.
You can carry an NOL (net operating loss) forward or backward for up to 5 years. I think you have to choose one direction or the other though, you can’t carry it back a couple of years and amend those returns and get a refund then decide to carry the rest of your 5 years forward. The NOL would just offset operating income in future years dollar for dollar.