what is the 80 nol rule 
the 80 nol rule was introduced by the tax cuts and jobs act tcja of 2017 and limits net operating loss carryforwards to 80 of each subsequent year s net income the bottom lineposting a loss is never a good thing however there is at least one positive to take from it it s possible to use a loss to offset taxable income in future years in a process called loss carryforward there are some limitations though from the 2021 tax year you can no longer carry back a loss from one year to a previous year moreover carryforwards are now limited to 80 of each subsequent year s net income 