Video: Net Operating Losses and Capital Losses

In this lesson, Nick Palazzolo, CPA, takes a deep dive into the intricacies of Net Operating Losses (NOLs) and capital losses, explaining their implications on corporate tax liability management in comprehensive detail. He conveys the importance of comprehending how NOLs and capital losses can be carried back and forward to offset income or gains, and highlights critical points like the non-deductibility of charitable contributions and dividends received deduction (DRD) in calculating corporate NOLs. Through various elucidative examples, Nick breaks down the treatment of NOL carryovers, the application of the 80% taxable income limitation, and the distinctive rules for capital losses. He also emphasizes the need for familiarity with tax forms and the necessity of mastering the rules for carryforwards and carrybacks in order to confidently handle potential examination simulations and real-world scenarios.