CA - NOL Deductions Suspended then Reinstated

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California NOL Deductions Suspended then Reinstated

For tax years beginning in 2002 and 2003, California suspended the Net Operating Loss (NOL) carryover deduction. NOLs generated during these tax years continued to be computed and carried over. Disaster losses were not affected by this suspension. The carryover period for suspended losses was extended by two years for losses incurred before January 1, 2002 and by one year for losses incurred after January 1, 2002 and before January 1, 2003.

For taxable years beginning on or after January 1, 2004:

  • California has reinstated the NOL carryover deduction
  • 100% of the NOL may be carried forward for ten years
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