How Effective Tax Planning Can Increase the Tax Benefits of Corporate NOLs
Journal of Taxation, Volume 120, Number 2, February 2014
16 Pages Posted: 17 Aug 2014
Date Written: March 4, 2014
Factors such as the dividends-received deduction, the corporate AMT, and the Section 382 loss rules complicate the computation of NOLs and affect decisions needed in determining whether to carry the loss back.
The NOL procedures provide an effective means of averaging the cyclical swings of profitable and nonprofitable tax years. Without these provisions, taxpayers would in effect "waste" excess deductions that occur in one tax year.
Keywords: net operating loss, NOL, corporate income tax, corporate tax, corporate AMT, dividends received, carryover, carryback, carryforward, tax loss
JEL Classification: H20, H25, K34
Suggested Citation: Suggested Citation