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    Utilizing NOL carryforwards effectively

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    What happens if a company doesn't expect to become profitable for the foreseeable future, thus calling into question whether the company will ever get to use the tax benefit of its deferred tax asset from the NOL carryforward?

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    The NOL will carry forward for 20 years or until absorbed, whichever happens first. The rules for carrying back an NOL are very different and have been changed in recent years. Obviously, carrybacks are viewed more critically because they can generate immediate cash.

    There ...

    Solution Summary

    This 168 word response explains the limits for carryforward NOLs including five planning strategies to be able to absorb NOLs.