A taxpayer can carry back any NOL incurred for two years and then forward up to 20 years.

Question

Quizplus · Accepted Answer

The rules for carrying back and carrying forward Net Operating Losses (NOLs) have changed over time due to legislative acts such as the Tax Cuts and Jobs Act (TCJA) of 2017 and the CARES Act of 2020. As of my last update in 2023, for tax years beginning after 2020, NOLs can no longer be carried back (with certain exceptions for specific industries like farming and insurance companies), but can be carried forward indefinitely, subject to a taxable income limitation of 80%.

A Taxpayer Can Carry Back Any NOL Incurred for Two