### Question
How does Determination of Tax Liability define alternative tax net operating loss deduction?


### Answer
Under *26 U.S.C. § 56*, **alternative tax net operating loss deduction** is defined as:

> 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) in the case of taxable years beginning after December 31, 1986, section 172(b)(2) shall be applied by substituting “90 percent of alternative minimum taxable income determined without regard to the alternative tax net operating loss deduction” for “taxable income” each place it appears

#### 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**

