Alternative Tax Net Operating Loss - ATNOL


DEFINITION of 'Alternative Tax Net Operating Loss - ATNOL'

The excess of deductions allowed over the income recognized for alternative minimum tax (AMT) purposes. It is calculated the same way that net operating losses (NOL) are, but with additional rules covering deductions, exclusions and preferences related to AMT.

Section 56 of the Internal Revenue Code (Title 26) permits taxpayers to substitute the net operating loss with ATNOL when calculating alternative minimum tax. The amount of ATNOL that can be deducted when calculating AMT income cannot exceed 90% of the obligation. If ATNOL exceeds this limit it can still be carried back or forward, but the ATNOLD limit will still apply to the carryback or carryforward year.

BREAKING DOWN 'Alternative Tax Net Operating Loss - ATNOL'

When corporations reach a certain size, they can become subject to an alternative minimum tax. Only years in which a corporation is subject to AMT rules will ATNOL rules also apply.

When reporting ATNOL, taxpayers file Form 1045 and Form 6251.

  1. Form 1045: Application For Tentative ...

    A tax form distributed by the Internal Revenue Service (IRS) ...
  2. Form 6251: Alternative Minimum ...

    A tax form distributed by the Internal Revenue Service (IRS) ...
  3. Loss Carryforward

    An accounting technique that applies the current year's net operating ...
  4. Alternative Minimum Tax - AMT

    A tax calculation that adds certain tax preference items back ...
  5. Loss Carryback

    An accounting technique with which a company retroactively applies ...
  6. Net Operating Loss - NOL

    A period in which a company's allowable tax deductions are greater ...
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