What is a prior year net operating loss carryover?
A California prior year net operating loss (NOL) carryover is an NOL reported by your business or pass-through entity in a taxable year prior to 2012 that, due to income or other limitations, was not eligible to be taken as an offset to taxable income in the year it was incurred. A certain portion of that NOL can then be carried over to offset taxable income in later years, such as this year.
