Visualize and understand the rules for NOLs and Capital Losses.
Core Concepts at a Glance
This section provides a high-level comparison of the carryover rules for different types of corporate losses. Understanding these timelines is the first step in strategic tax planning. The rules have changed significantly over the years, affecting when and how much you can deduct.
Net Operating Loss (NOL)
Arising in 2021 & beyond:
Carryback: 0 years. Carryforward: Indefinitely.
Offset Limit: 80% of taxable income.
Arising in 2018 - 2020:
Carryback: 5 years. Carryforward: Indefinitely.
Offset Limit: 100% of taxable income.
Arising before 2018:
Carryback: 2 years. Carryforward: 20 years.
Offset Limit: 100% of taxable income.
Net Capital Loss
Corporate Rule:
Carryback: 3 years. Carryforward: 5 years.
Usage: Can only offset capital gains.
Individual vs. Corporate:
Corporations cannot deduct net capital losses against ordinary income. Individuals can deduct up to $3,000 per year.
NOL Carryover Calculator
This tool simulates the NOL carryback and carryforward process based on the rules from the CARES Act and TCJA. Enter the details of your NOL and see how it would be applied across different tax years. The visualization will help you understand the impact of the 5-year carryback for 2018-2020 NOLs and the 80% income limitation for post-2020 deductions.
Capital Loss Carryover Visualizer
Corporate capital losses have a strict, limited lifespan. Unlike NOLs, they can only be carried back 3 years and forward 5 years. This tool helps you visualize this window. Enter the year a capital loss was generated to see the exact period during which it can be used to offset capital gains.
Section 382 Limitation Explorer
Section 382 exists to prevent companies from being acquired solely for their accumulated tax losses (NOLs). If a "loss corporation" undergoes a significant ownership change (more than 50%), the amount of its past NOLs it can use each year is limited. Use the tools below to test for an ownership change and calculate the annual limitation.
1. Ownership Change Test
Add all 5-percent shareholders and their ownership percentage at the lowest point during the 3-year test period and at the end. The tool will calculate the aggregate increase.
2. Annual Limitation Calculator
If an ownership change occurred, calculate the annual limit on using pre-change NOLs.