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hello and welcome to the section nor should look at net operating losses NOL and how do we do accounting for NOL and how do NOL gives us the FairTax asset and how do we have to calculate any well and some of the rules for the net operating losses so what is it now NOL NOLs net operating loss and when does it arise it arises when the tax deductible expense so we have more expenses for tax purposes then taxable revenue so basically we have a loss why because if you remember from your basic accounting course if your expense are greater than your revenue you have a loss but now we are dealing with are those our tax expense and tax revenue okay so the federal tax basically the government says it gives you the up it gives you it gives you the option to use the losses of one year to offset the profit of other years this is called you could go back or you can take it forward and basically you don't have to worry about this but this is called the income averaging provision basically what we wha

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