NOL
- Net operating loss: a financial situation where a company's allowable tax deduction is greater than its taxable income, resulting in negative taxable income
- The start-up had an NOL for the first few years, since their expenses exceeded their income.
- Many businesses utilize an NOL as a tax relief option to offset profits in future years.
- Having an NOL can be challenging for a company, but it can also provide potential tax benefits.
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