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In California, the standard rule for NOL carryovers is that they can be carried forward for 10 years2 following the loss year for losses generated in 2000 through 2007 and for 20 years following the loss year for losses generated in 2008 and forward.
"Eligible small business" means any trade or business that has gross receipts, less returns and allowances, of less than one million dollars ($1,000,000) during the taxable [income] year. (Revenue and Taxation Code §§ 17276(e)(1) & 24416(f)(1).)
Suspension of NOL carryover deduction For taxable years 2020 and 2021, California has suspended the NOL carryover deduction. Both corporations and individual taxpayers may continue to compute and carryover an NOL during the suspension period.
Purpose. Use form FTB 3805Q, Net Operating Loss (NOL) Computation and NOL and Disaster Loss Limitations \u2014 Corporations, to figure the current year NOL and to limit NOL carryover and disaster loss carryover deductions.