what is a loss carryforward 
a loss carryforward refers to an accounting technique that applies the current year s net operating loss nol to future years net income to reduce tax liability for example if a company experiences negative net operating income noi in year one but positive noi in subsequent years it can reduce future profits using the nol carryforward to record some or all of the loss from the first year in the subsequent years this results in lower taxable income in positive noi years reducing the amount the company owes the government in taxes loss carryforward can also refer to a capital loss carryforward investopedia ryan oakley