Posted: March 31st, 2016
During a group chat, you heard 2 members of a team arguing about the application of the net operating loss. One member thinks it is a loss sustained on the income statement and should have no effect on the company s tax return. The other member, while not sure of his answer, countered that it is a cash flow tax item but he did not know how it is treated on the tax return.
As a tax expert, please advise who is correct.
What is net operating loss?
Are there special limiations? If so, what are they
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