Adjustments to net operating loss computation

Official source

(A) Post-1986 loss years In the case of a loss year beginning after December 31, 1986 , the net operating loss for such year under section 172(c) shall— (i) be determined with the adjustments provided in this section and section 58, and (ii) be reduced by the items of tax preference determined under section 57 for such year. An item of tax preference shall be taken into account under clause (ii) only to the extent such item increased the amount of the net operating loss for the taxable year under section 172(c).

(B) Pre-1987 years In the case of loss years beginning before January 1, 1987 , the amount of the net operating loss which may be carried over to taxable years beginning after December 31, 1986 , for purposes of paragraph (2), shall be equal to the amount which may be carried from the loss year to the first taxable year of the taxpayer beginning after December 31, 1986 .

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Adjustments to net operating loss computation

Official source

(A) Post-1986 loss years In the case of a loss year beginning after December 31, 1986 , the net operating loss for such year under section 172(c) shall— (i) be determined with the adjustments provided in this section and section 58, and (ii) be reduced by the items of tax preference determined under section 57 for such year. An item of tax preference shall be taken into account under clause (ii) only to the extent such item increased the amount of the net operating loss for the taxable year under section 172(c).

(B) Pre-1987 years In the case of loss years beginning before January 1, 1987 , the amount of the net operating loss which may be carried over to taxable years beginning after December 31, 1986 , for purposes of paragraph (2), shall be equal to the amount which may be carried from the loss year to the first taxable year of the taxpayer beginning after December 31, 1986 .