Net Operating Losses Self-Study
A goal of every business is to make a profit; however, losses occur. A net operating loss (NOL) can occur when deductible business expenses and losses exceed gross income. The provisions under §172, Net Operating Loss Deduction, are important because tax professionals increasingly find themselves working with clients who are incurring net operating losses (NOLs). Without a basic understanding of NOLs, tax professionals cannot provide their clients with the best possible tax outcome. In addition to NOLs, the IRS analyzes an NOL under alternative minimum tax rules. This course enhances the tax professional’s understanding of NOLs and alternative minimum tax NOLs (ATNOLs). For individuals, the CARES Act made changes to NOLs generated in 2018-2020.
Upon completion of this course, you will be able to:
- Determine if a business or individual incurred an NOL
- Calculate the NOL
- Identify when a taxpayer is eligible to make an election to carry forward and carry back an NOL
- Distinguish between business and nonbusiness income and losses to correctly calculate the NOL
- Define changes made by the CARES Act
- Correctly calculate an ATNOL and the effect of tax preference items
- Compute the NOL carryover and carryback when there is a filing status change
This course includes an e-book and exam questions to help you earn CPE. CPE is issued after the exam is successfully completed.