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Simple English definitions for legal terms

net operating loss (NOL)

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A quick definition of net operating loss (NOL):

Net operating loss (NOL): When a company spends more money than it makes in a year, it's called a net operating loss. This means the company can deduct that loss from its taxes in future years to help reduce its tax bill. However, there are limits to how much can be deducted.

A more thorough explanation:

A net operating loss (NOL) occurs when a company's expenses are greater than its income for a given year. This means that the company has a negative taxable income. The Internal Revenue Code defines NOL as "the excess of the deductions allowed by this chapter over the gross income."

For example, if a company has $100,000 in expenses and only $80,000 in revenue, it would have a net operating loss of $20,000.

When a company has an NOL, it can use it to offset its taxable income in other years. This is called a carryback or carryover. For instance, if a company has an NOL of $20,000 in year one and a taxable income of $50,000 in year two, it can use the NOL to reduce its taxable income to $30,000.

However, there are limits to how much of the NOL can be used in a given year. The deduction is limited to 80% of taxable income.

Overall, an NOL can be a helpful tool for companies that experience a loss in a given year. It allows them to reduce their tax liability in future years and potentially improve their financial situation.

net loss | Net Probate Estate

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General chat about the legal profession.
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got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
WorthlessAttractiveZombie
7:46
Also has anyone's date disappeared for W&L? Mine did last night
7:55
@WorthlessAttractiveZombie: mine did yesterday morning
7:56
Oops sorry I meant Vilanova. Mine disappeared last week
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