New York Draft NOL Regs Helpful, but Questions Remain


Alysse McLoughlin said New York’s recently releaseddraft rules on the prior net operating loss conversion (PNOLC) subtraction were a good attempt at giving guidance on a new issue and that the examples provided were helpful. However, she stated that a provision in the draft limiting taxpayers to the lesser of a computed federal unabsorbed NOL amount or a New York unabsorbed NOL amountis questionable and may be inconsistent with the corporate tax reform legislation.