Can a personal service corp deduct net operating losses?

No, a personal service corporation (PSC) cannot deduct net operating losses (NOLs) against income in the same way that other corporations can. Instead, PSCs are subject to a flat tax rate of 21% on their taxable income, and any NOLs are generally limited to offsetting income in future tax years rather than being deducted in the current year. However, if a PSC has NOLs, they may carry them forward to future years to offset taxable income, subject to certain limitations.