Question 10 How are Net Operating Losses of corporations treated for tax purposes? 100% of Net Operating Loss is allowed for 2018, 2019, and 2020. An NOL created in or carried forward to 2021 will be subject to an 80% limitation. Net Operating Loss is limited to 80% of current year's taxable income. Net Operating Loss is carried back 3 years and forward 5 years. (D) Net Operating Loss is carried back 3 years