Perspective
Oct. 8, 2016
Trump's NOL lasts 20 years, but audits last 3?
Brilliant or not, Donald Trump had big losses in 1995. And that means he could offset other income across many years. That's the system, one that makes everyone file tax returns annually, but that can allow losses to span many years. By Robert W. Wood
Robert W. Wood
Managing Partner
Wood LLP
333 Sacramento St
San Francisco , California 94111-3601
Phone: (415) 834-0113
Fax: (415) 789-4540
Email: wood@WoodLLP.com
Univ of Chicago Law School
Wood is a tax lawyer at Wood LLP, and often advises lawyers and litigants about tax issues.
Brilliant or not, Donald Trump had big losses in 1995. And that means a big pot of losses than he could - and probably did - use to offset other income across many years. That's the system, one that makes everyone file tax returns annually, but that can allow losses to span many years. A net operating loss, or NOL, is the excess of a taxpayer's deductions over gross income.
Under the Tax Code, an NOL results when certain of...
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