Net Operating Losses - 2019 Update
Most taxpayers no longer have the option to carryback a net operating loss (NOL). They can only carry forward NOLs arising in tax years ending after 2017. The two-year carryback rule in effect before 2018, generally, doesn’t apply to NOLs arising in tax years ending after Dec. 31, 2017. Exceptions apply to certain farming losses and NOLs of insurance companies other than a life insurance company. Also, for losses arising in taxable years beginning after Dec. 31, 2017, the law limits the NOL deduction to 80 percent of taxable income (figured without regard to the deduction).