ABSTRACT
The only penalties and fines you could deduct are those set by a private company as part of doing business, such as late fees on an overdue bill, or if you’re renting office space and break the lease so you have to pay penalties to the landlord. The 2018 tax reform also instituted limits on how much NOL you can deduct in a year and eliminated the two-year carryback, meaning that losses can only be carried forward if they were incurred prior to January 1, 2026. NOLs generated in this period can be carried back up to five years, and an unlimited carry-forward, so if you’re of many people who used job loss or other COVID-induced life changes to go indie, think carefully about whether it makes sense to go backwards compatible or save that NOL as a lifeline for a year your game attains Among Us levels of finding a huge audience long after release.
