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A net operating loss (NOL) is the amount that Idaho taxable income, after making a few modifications, is less than zero. Individuals, C corporations, trusts and estates are allowed a deduction in computing Idaho taxable income for an Idaho NOL. S corporations and partnerships are not allowed an NOL deduction. Instead, any losses are passed through to the shareholders and partners.
For tax years beginning on and after January 1, 2000, you must generally carry an NOL back to the two preceding tax years. The loss carried back is limited to a maximum of $100,000. The loss is first applied to the second tax year preceding the loss year. Any loss not fully subtracted or absorbed from Idaho income is next applied to the first preceding tax year. Any loss not absorbed in the carry-back years and the loss in excess of $100,000 can be carried forward up to 20 years. Losses carried forward are applied to each year in order until absorbed. You may elect to forego the carryback period and carry the loss forward. This election must be made by the due date, including extensions, of the loss year return. The election cannot be revoked. For tax years beginning prior to January 1, 2000, you generally must carry an NOL back to the three preceding tax years unless you made a timely election to forego the carry-back period. The carry-back is limited to a maximum of $100,000. Any loss not absorbed in the carryback years and the loss in excess of $100,000 can be carried forward up to 15 years.
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