You must make certain modifications to your taxable income to determine how much NOL you will use up in the year and how much you can carry to the next tax year. The you can carry to the next tax year generally is the excess of the amount of your NOL carried to the tax year over your modified taxable income for the carryback or carryforward
year. page 7 of IRS publication 536 <a rel="nofollow" target="_blank" href="
https://www.irs.gov/pub/irs-pdf/p536.pdf">https://www.irs.gov/pub/irs-pdf/p536.pdf</a>
