Deferring Tax Losses

When Taxable Income and Special Deductions (TaxableIncomeBeforeLoss + TaxSpecialDeductions) results in a negative amount, you may define a rule to defer a loss so it could be utilized in a future period. Optimal loss deferral will result in Taxable Income of 0 by deferring a loss equivalent to the sum of Taxable Income and Special Deductions, plus any amounts manually entered in the TaxLossCarryforward account(s).

If a company incurs a loss that is, Taxable Income After loss is less than 0, this Loss can be deferred so that it can utilized in future periods/years. Depending on the deferral percentage specified in the NOL Automation the Automated of the carry forward account is populated using the formula =Taxable Income Before loss x Deferral percent x -1.

Note:

Tax credits deferral amount is a manual entry only. Automation is not supported for tax credit accounts.