Net operating losses : concepts and computations

""... describes and illustrates the tax principles for using a net operating loss sustained by a taxpayer as a net operating loss deduction under [section] 172. The net operating loss deduction allows a taxpayer with a loss in one taxable year to carry the loss back or forward to offset taxable income of earlier or later taxable years. By permitting taxpayers to offset profitable years with loss years, the deduction minimizes the disparity that would otherwise result between businesses with stable incomes and businesses with fluctuating incomes due to use of an annual accounting period.""
"" ... describes and illustrates the tax principles for using a net operating loss sustained by a taxpayer as a net operating loss deduction under [section] 172. The net operating loss deduction allows a taxpayer with a loss in one taxable year to carry the loss back or forward to offset taxable income of earlier or later taxable years. By permitting taxpayers to offset profitable years with loss years, the deduction minimizes the disparity that would otherwise result between businesses with stable incomes and businesses with fluctuating incomes due to use of an annual accounting period"--Portfolio description (p. iii)."@en