Loss Carryforward

An income averaging provision of tax law that allows a taxpayer, under certain circumstances, having a net operating loss for tax purposes (i.e. tax deductible expenses and exemptions exceeded taxable revenues) in a given year to carry that loss forward for off-setting future taxable income. The number of years carried forward would depend on then existing tax laws. Loss carryforwards are often referred to as net operating losses (NOL), loss carryovers, or tax loss carryforwards. (III-13-15, 24)

Authorization Path: 2.2.5.2.43.1