Watch Out for New Net Operating Loss Rules
If your business will have a 2018 net operating loss, it may no longer fully offset your 2019 income and may no longer be carried back in a refund claim.
For losses generated in 2018 or later, Tax Reform eliminated the ability to carry back NOLs for two years and instead permits an unlimited NOL carryforward period (rather than 20 years).
For losses generated in 2018 or later, not more than 80% of the current year’s taxable income can be offset by otherwise available NOL carryforwards. However, loss carryforwards from 2017 and prior years are not subject to this limit and can still be used to offset 100% of your income.
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