Category

Business

Type

Business

2025 Limit

Deduction limited to 80% of taxable income; carries forward indefinitely

2026 Limit

Deduction limited to 80% of taxable income; carries forward indefinitely

IRC Reference

IRC § 172

Eligibility

Businesses with net losses

Notes / Description

Post-TCJA, NOLs cannot be carried back (with limited exceptions). Valuable for businesses in volatile income years.