Defining Deferral Rules: Example

If Taxable Income is -35,493, the system could defer up to 35,493 of losses in the current period. You can define a rule to defer losses by deferral percent amount automatically.

After you define the NOL Automation deferral rule and then run Consolidation, the system creates a loss carryforward of 35,493 to completely offset the negative Total Income + Special Deductions. The Taxable Income and Current Tax on Taxable Income in the Current Provision now change to 0.

The Tax Losses schedule now shows the booked loss in the TLCCreatedAutomated movement member for the current year for the Tax loss carry forward account.

The Temporary Differences schedule now shows the deferred loss under the Automated (CYSys) column for the target Tax loss carry forward account.