net operating loss (NOL)

Definition from Nolo’s Plain-English Law Dictionary

An annual net loss from a business operation. An NOL may be used to offset the income of unincorporated business owners from other sources of income in the year of the loss. An NOL may also be carried back two years to reduce tax liabilities or secure refunds of taxes. (See also: carryover)

Definition provided by Nolo’s Plain-English Law Dictionary.