Using a Formula for NOL's (Net Operating Losses)

[Joe L]

Year NOL Income NOL Used
2000 -50k
2001 -20k
2002 -10k
2003 100k



Is there a formula that I can put in a cell that will automatically pull from NOL column and calculate when that cell hits 0?

For example in 2000, 2001, 2002, I have an NOL's of 50,000, 20,000, & 10,000.
In 2003, I have income of 100,000. I want to use the NOL of 50k, 20k, & 10k against my income. How do I tell excel to use all of the 50k first, then once it hits 0 to automatically go to 2001 and use that NOL until it hits 0, then go to 2002 and use the rest.

Any help would be appreciated.

Thank You!

 

[eibi]

Joe,

Welcome to the forums!

I assume that you want a formula you can paste in your third column, but I'm not sure that I understand exactly what output you expect to get in that column...

Perhaps you can expand your example and provide the desired output? Then, we can help compose a formula and test to verify that it achieves your desired outcome.

All best.

Isaac

 

[Joe L]

I have attached a file with explanation. Let me know if you need further explanation

 

[eibi]

Joe,

I'm still not sure I understand exactly what you want, so I've proposed three different formulas based on the sample you provided...See attached file.

If none of these are what you want, I'll need you to further expand your example so I can see a longer time period (say 10-15 years with multiple years of income) so I can understand the pattern of how you want the income applied to the NOL.