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 Tax Year End of NOL 2020

Ak 2020-2025 Form

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Instructions and help about ak carryovers

hello welcome to accouny HUB I'm Professor Dar scarping p in accounting and our topic today is net operating losses or NS what is it ns are negative taxable income on the tax return when tax deductible expenses exceed taxable revenues no taxes payable in the year and that operating loss or C it doesn't make sense to pay tax when you the income or to pay income tax when there is no income the tax law permits an nool to be used to reduce taxable income in subsequent profitable years that's what happened all over the place so not only here in the US but in most of our countries uh and nool carry forward so I will pay less tax in the future creates a tax asset so it is just like any def tax asset then n o tax benefit should be recognized in the year the loss occurs here in the US it nool do not expire so you can use it as for the next 20 30 40 years there are some countries uh such as Brazil that expires in five years so check your local law if you are not in the US

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