The Daily Beast reports (h/t Jim Geraghrty):
Trump’s 2005 return also shows that he’d continued to benefit from the roughly $916 million loss he reported in his 1995 return—published last year by The New York Times. Using a loophole Congress closed in 1996, Trump converted that loss into a tax credit for the same amount he could offset against income. Emphasis added.
Jim has the same Daily Beast quote. We went to the source to make sure they hadn’t tried explain the bold section elsewhere. We have made bold the phrase we’d like to talk about. First, loss carry back (a great horse) and carry forward, seem a matter of fairness to us. If you make a million in 2017 after losing a million in 2016 you have not made a profit for the two years combined. Fairness suggests you should pay no taxes over the two years. That is what the “loophole” allows.
Was the loophole closed in 1996? It seems obvious that it wasn’t if The Donald was using it in 2005. Well it was adjusted:
The Net Operating Loss (NOL) carry-back and carry-forward periods have been changed. Under the new law, the carry-back period is now reduced to 2 years. The carry-forward period is increased to 20 years. This change is affective for tax years beginning after August 5, 1997.
It was not eliminated. One part was reduced and the other was increased. It is the kind of biased reporting we expect today.