### Question
What does alternative tax net operating loss deduction mean?


### Answer
**Alternative tax net operating loss deduction** has the following meaning in *26 U.S.C. § 56*:

> the net operating loss deduction allowable for the taxable year under section 172, except that—


(A) the amount of such deduction shall not exceed 90 percent of alternate minimum taxable income determined without regard to such deduction, and


(B) in determining the amount of such deduction—


(i) the net operating loss (within the meaning of section 172(c)) for any loss year shall be adjusted as provided in paragraph (2), and


(ii) appropriate adjustments in the application of section 172(b)(2) shall be made to take into account the limitation of subparagraph (A)

#### Citation:
  - *26 U.S.C. § 56*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART VI-ALTERNATIVE MINIMUM TAX**

