Idaho Idaho Net Operating Loss
Extracted from PDF file 2019-idaho-form-56.pdf, last modified October 2019
Idaho Net Operating LossForm 56 Net Operating Loss Carryforward/Carryback Names as shown on return 1. Loss or absorption year ................ 2. Individuals, trusts and estates enter Idaho adjusted income (loss); corporations enter Idaho taxable income (loss) ................... 3. Idaho NOL carryforward/carryback deducted on the return ................. 4. Net capital loss deducted on the federal return ................................ 5. Idaho capital gains deduction claimed on the return ................... 6. Casualty losses on Idaho property included in itemized deductions ... 7. Idaho net operating loss ............... 8. Idaho absorption income .............. NOL Application year to year to to to to to to to to to to NOL available for future years EFO00051 06-14-2019 Social Security number or EIN Form 56 — Instructions Net Operating Loss Carryforward/Carryback General Instructions A net operating loss (NOL) occurs when the amount of Idaho taxable income, after making modifications, is less than zero. Idaho calculates the Idaho NOL differently than the federal NOL, so you must always add back the NOL claimed on your federal income tax return. Idaho allows a deduction to individuals, C corporations, trusts and estates. S corporations and partnerships aren’t allowed an NOL deduction. Instead, any losses pass through to the shareholders and partners. You can use an NOL by deducting it from your income in another year or years. Include Form 56 or your own schedule with the return for any year you carry the NOL to. Specific Instructions Calculation of Idaho NOL Complete lines 1 through 8 to compute and use your Idaho NOL. Corporations—skip lines 4 through 6. Trusts and estates—skip lines 5 and 6. Line 1. Starting with the earliest tax year, enter absorption years and the NOL year. An absorption year is the year you use the NOL to offset your income. An NOL year is the year you incurred a loss. Line 2. The calculation of the Idaho NOL starts with Idaho adjusted income. Enter the Idaho adjusted income (loss). Individuals: Full-year residents: For tax years 2011 through 2017, this is Form 40, line 11 For tax years 2018 and 2019, this is Form 40, line 12 Part-year and nonresidents: For tax years 2011 through 2017, this is Form 43, line 31, column b For tax years 2018 and 2019, this is Form 43, line 32, column b Trust and Estates: • Enter the Idaho taxable income (loss) before the exemption deduction. For tax years 2011 through 2019, this is Form 66, line 7 EIN00022 06-14-2019 Corporations: • Enter the Idaho taxable income (loss) from Form 41. For tax years 2011 through 2019, this is line 37 Line 3. Add any Idaho NOL carryback/carryover deduction for losses from prior years. Enter the amount as a positive number. Individuals: Full-year residents: Form 39R, section B, line 1 Part-year and nonresidents: Form 39NR, section B, line 1 Trust and Estates: • Form 66, Schedule B, line 7 Corporations: • Form 41, line 36 Line 4. Add the net capital loss deduction claimed on the federal return. For example, a taxpayer reported a $4,000 capital gain and a $5,000 capital loss on federal Schedule D. The capital loss deduction included in Idaho adjusted income (loss) is $1,000. Enter the amount as a positive number. Individuals: • Federal Schedule D (Form 1040) Trust and Estates: • Federal Schedule D (Form 1041) Corporations: • Don’t enter anything on this line Line 5. Add any Idaho capital gains deduction claimed on your Idaho return. Enter the amount as a positive number. Individuals: Full-year residents: Form 39R, section B, line 10 Part-year and nonresidents: Form 39NR, section B, line 6 Corporations, Trusts and Estates: • Don’t enter anything on this line Line 6. Subtract any casualty losses on Idaho property included in itemized deductions on federal Schedule A. Enter the amount as a negative number. Losses resulting from Ponzi schemes are considered theft losses, not casualty losses. You must add back those amounts in determining the amount of an Idaho NOL. Page 1 of 2 Form 56 — Instructions 2019 (continued) Application of an NOL (Example) Individuals: • Federal Schedule A Corporations, Trusts and Estates: • Don’t enter anything on this line Line 7. Idaho net operating loss. Add lines 2 through 5, then subtract line 6 for loss years only. Enter the result here. For absorption years, skip line 7 and go to line 8. Line 8. Idaho absorption income. Add lines 2 through 5, then subtract line 6 for absorption years only. Enter the result here. Carryback/Carryover of Idaho NOL For a corporation with multiple entities operating in Idaho, each entity with Idaho activity can carryback $100,000 of NOL, up to the amount of Idaho taxable income per entity in the year carried back. For losses incurred after January 1, 2013, you only have one year from the end of the loss year to file an amended return carrying back the Idaho NOL. After that, you must carry the Idaho NOL forward. You can carry forward the remaining amount and apply it to the next 20 years until the NOL is fully absorbed. In this example, 2018 is the loss year. The loss amount is ($249,000) (shown on line 7). The taxpayer has Idaho absorption income of $73,500 in 2016 and $44,900 in 2017 (shown on line 8). $73,500 of the ($249,000) loss is used in 2016. Since the carryback is limited to $100,000, only $26,500 of the loss can be used in 2017. The remainder of the loss ($149,000) is available to be used in the next 20 years (NOL available for future years). 1. Loss or absorption year 2. Individuals, trusts and estates enter Idaho adjusted income (loss); corporations enter Idaho taxable income (loss) ................................... 3. Idaho NOL carryforward or carryback deducted on the return ...................... 4. Net capital loss deducted on the federal return .................................... 5. Idaho capital gains deduction claimed on the return ........................ 6. Casualty losses on Idaho property included in itemized deductions ......... 7. Idaho net operating loss .................... 8. Idaho absorption income .................. NOL Application year to year to 2016 2018 to 2017 2017 2018 70,500 32,900 (257,000) 12,000 8,000 3,000 (249,000) 73,500 44,900 (73,500) 73,500 (26,500) 26,500 to For losses incurred after January 1, 2000, and before January 1, 2013, you must carryback the Idaho NOL and apply it to the prior two years. You can carry forward the remaining amount and apply it to the next 20 years until the NOL is fully absorbed. You can carryback a maximum of $100,000 ($50,000 if you’re filing as married filing separately) of Idaho NOL. You must carry forward any Idaho NOL in excess of $100,000. 2018 2016 to to to to to to to NOL available for future years (149,000) Contact us: In the Boise area: (208) 334-7660 | Toll free: (800) 972-7660 Hearing impaired (TDD) (800) 377-3529 tax.idaho.gov/contact EIN00022 06-14-2019 Page 2 of 2
Form 56, Net Operating Loss Carryforward / Carryback and Instructions
More about the Idaho FORM 56 Corporate Income Tax
We last updated the Idaho Net Operating Loss in March 2020, and the latest form we have available is for tax year 2019. This means that we don't yet have the updated form for the current tax year. Please check this page regularly, as we will post the updated form as soon as it is released by the Idaho State Tax Commission. You can print other Idaho tax forms here.
Other Idaho Corporate Income Tax Forms:
|Form Code||Form Name|
|FORM 42||Idaho Apportionment And Combined Reporting Adjustments|
|FORM 41||Idaho Corporation Income Tax Return|
|FORM 56||Idaho Net Operating Loss|
|FORM PTE-12||Idaho Schedule For Pass-Through Owners with Instructions|
|FORM 41ES||Quarterly Estimated Tax/Extension of Time Payment|
Idaho usually releases forms for the current tax year between January and April. We last updated Idaho FORM 56 from the State Tax Commission in March 2020.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of Idaho FORM 56
We have a total of eight past-year versions of FORM 56 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
Form 56, Net Operating Loss Carryforward / Carryback and Instructions
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