Assume Ace Corp. owned 25% of the stock in Blah Corp. Blah Corp. pays Ace Corp. 1 dividend of $100.000.  Assume that Ace Corp. has taxable income of $40,000.  The dividend received deduction would be $50,000 as the Ace Corp. would have a $10,000 NOL after the dividend received deduction. My question is what happens with the NOL. Can it be used in the current year so the corporation would have a $10,000 NOL? Or would the Dividend Received Deduction simply reduce taxable income to $0 and the carry the NOL forward for another tax year?