how much loss can you write off in a loss carryforward 
a company can write off 80 of each subsequent year s net income in a loss carryforward in this way if a company lost 10 million in one year and earned 12 million the following year it can carryover 9 6 million on the balance sheet in the second year this is then indicated as a deferred tax asset and is represented as an expense on the income statement the benefit is that it lowers the taxable income in the second year to 2 4 million 