Alternative Tax Net Operating Loss - ATNOL

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  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. Loss Carryback

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

    A period in which a company's allowable tax deductions are greater ...
  6. Alternative Minimum Tax - AMT

    A tax calculation that adds certain tax preference items back ...
Related Articles
  1. Taxes

    Tax Treatment Of Roth IRA Distributions

    Learn the requirements for withdrawing funds tax and penalty free.
  2. Retirement

    Combining Your Plan Assets? Not So Fast!

    You might reduce the costs of maintaining more than one account, but you could also be forfeiting tax benefits.
  3. Taxes

    Avoiding IRS Penalties On Your IRA Assets

    The best way to avoid additional charges and taxes is to know which transactions have expensive consequences.
  4. Economics

    Corporate Tax Inversion

    U.S. companies like Burger King use corporate tax inversion to take advantage of lower taxes abroad.
  5. Taxes

    What is Value-Added Tax (VAT) and who pays it?

    Learn about the definition of value-added tax, the necessary circumstances that require a business to pay it and when a business is exempt.
  6. Taxes

    What types of revenue are taxable?

    Learn about all the various types of taxable corporate revenue and how different revenues are designated and differentiated from one another.
  7. Taxes

    10 Sources Of Nontaxable Income

    Taxes are often a deterrent from investing and saving. These financial practices will bring you no tax grief.
  8. Retirement

    Discover Master Limited Partnerships

    These unique investments provide significant tax advantages.
  9. Investing Basics

    How A Company Files With The SEC

    Filing with the SEC is not as complicated as you might thing -- just be meticulous about following the steps.
  10. Investing Basics

    Do U.S. High Corporate Tax Rates Hurt Americans?

    The United States has the highest corporate tax rate of the 34 developed, free-market nations that make up the Organization for Economic Cooperation and Development (OECD).

You May Also Like

Hot Definitions
  1. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  2. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  3. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  4. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  5. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  6. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
Trading Center