Net operating loss. The excess of business expenses over income. OID is generally treated as interest income to the holder rather than as a capital gain. Loss on an investment that is deductible only up to the limit of gains from similar investments. The limit mainly affects tax shelters and does not apply to stocks, bonds or investments in businesses in which the investor materially participates.
Special rules apply to investments in real estate.
A retirement or profit-sharing plan that meets requirements about who must be covered, the amount of benefits that are paid, information that must be given to plan participants, etc. Qualified plans are entitled to tax benefits unavailable to nonqualified plans. The undoing of a tax benefit if certain requirements are not met in future years. The alimony deduction may be retroactively lost or recaptured if payments do not continue at the requisite level for a minimum number of years. A mutual fund.