Utilizing Tax Loss/Credit

When Taxable income (TaxableIncomeAfterLoss) results in a positive amount, you can define rule to utilize losses that were deferred in prior periods or years. Optimal loss utilization will result in Taxable Income of 0 by utilizing the amount equivalent to the sum of Taxable Income and Special Deductions, plus any amounts manually entered in the TaxLossCarryforward account(s).

Note:

Utilization of tax credits follows same process of losses utilization.

When you check the Utilization rule, only then its dependent columns (see also, Working with NOL Automation Columns) are enabled like:

Utilization limit Taxable Income - Percent and Amount - If both Percent and Amount are present then Amount has more precedence over the Percent.
Utilization limit C/F- Percent and Amount - Specify the utilization limit per carry forward account. if both Percent and Amount are present then Amount has more precedence over the Percent
Priority- This is a number which is used to specify the priority across the rules

Note:

Utilization process looks for earliest year of expiration and use that amount first. If all years are expiring at the same time, then use the oldest year of origination.