The tax treatment of NOL’s changed dramatically due to the “Tax Cuts & Jobs Act” of 2017 (TCJA) and the “Coronavirus Aid, Relief, and Economic Security Act “(CARE Act) of 2020.

1. Briefly define and explain a “net operating loss” (NOL).
2. Explain how corporate NOL’s were treated for tax purposes

• Prior to the TCJA;
• After the TCJA but before the CARES Act; and
• After the CARES Act.

3. How are NOLs treated for accounting purposes? What impact does each Act have on the accounting treatment of NOLs?

Answer rating: 100% (QA)

1Net operating loss NOL is a situation in which the annual tax deductions of a business or other ent... View the full answer