net operating loss
Defined in 2 dictionaries — Case Law, U.S. Code
Definitions from Case Law
From 338 U.S. 442 - Reo Motors, Inc. v. Commissioner · 1950Most cited · 69 citing opinions
A net operating loss must be computed on the basis of the tax laws applicable to the year in which the loss was suffered. The amount of net operating loss which may be utilized as a carry-over or carry-back and the extent to which it may be used as an offset to net income in another year depend upon the law of the year in which the 'carry' is effective, while the net operating loss deduction which may be taken in any one year depends upon the law in effect during that year.
United States Code
26 U.S.C. § 172 — for purposes of this section
For purposes of this section, the term “net operating loss” means the excess of the deductions allowed by this chapter over the gross income. Such excess shall be computed with the modifications specified in subsection (d).