Net Operating Loss (NOL) REVIEWED BY ALICIA TUOVILA Updated Aug 28, 2019 What Is a Net Operating Loss (NOL) For income tax purposes, a net operating loss (NOL) is the result when a company's allowable deductions exceed its taxable income within a tax period. The NOL can generally be used to offset the company's tax payments in other tax periods through an Internal Revenue Service (IRS) tax provision called a loss carryforward.
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