Current through August 31, 2023
Section
63-3022(c), Idaho
Code
01.
Definitions for
Purposes of Net Operating Loss Carrybacks and Carryovers. (4-6-23)
a. The term net operating loss deduction
means the sum of the Idaho net operating losses carried to another taxable year
and subtracted in computing Idaho taxable income. (4-6-23)
b. A net operating loss is absorbed when it
has been fully subtracted from Idaho taxable income, as modified by Section
63-3021, Idaho Code.
(4-6-23)
02.
Adjustments to Net Operating Losses. (4-6-23)
a. Adjustments to a net operating loss will
be determined pursuant to the law applicable to the loss year.
(4-6-23)
b. Adjustments to a net
operating loss deduction may be made even though the loss year is closed due to
the statute of limitations, but will not result in any tax due or refund for
the closed taxable years. (4-6-23)
03.
Adjustments in Carryback and
Carryover Years. (4-6-23)
a.
Adjustments to income, including modifications pursuant to Section
63-3021, Idaho Code, in a
carryback or carryover year must be made for purposes of determining, how much,
if any, of the net operating loss may be carried over to subsequent years.
(4-6-23)
b. Adjustments are made
pursuant to the law applicable to the carryback or carryover year.
(4-6-23)
c. Adjustments may be made
even though the year is closed due to the statute of limitations, but will not
result in any tax due or refund for the closed taxable years.
(4-6-23)
04.
Net
Operating Loss Carrybacks Application. (4-6-23)
a. The net operating loss carryback allowed
for the entire carryback period may not exceed one hundred thousand dollars
($100,000) per taxpayer. Each corporation that has a net operating loss and is
included in a unitary group is limited to a maximum carryback of one hundred
thousand dollars ($100,000). (4-6-23)
b. The sum of net operating loss deductions
must not exceed the amount of the net operating loss incurred.
(4-6-23)
c. For taxable years
beginning prior to January 1, 2013, if the taxpayer makes a valid election to
forego the carryback period as provided in Subsection
201.05, the provisions of
Subsection 201.04.c. do not apply and the
net operating loss carryover is applied as follows: (4-6-23)
i. For net operating losses incurred in
taxable years beginning on and after January 1, 2000, but prior to January 1,
2013, the net operating loss is subtracted in the twenty (20) succeeding
taxable years, in order, until the loss is absorbed.
(4-6-23)
d. For taxable
years beginning prior to January 1, 2013, if the taxpayer fails to make a valid
election to forego the carryback period, the net operating loss must be carried
back. If a carryback year is closed due to the statute of limitations, the net
operating loss carryback may not result in a refund for the closed taxable
year. (4-6-23)
e. For net operating
losses incurred in taxable years beginning on and after January 1, 2013, if an
amended return carrying back the loss is filed within one (1) year of the end
of the taxable year of the net operating loss, the net operating loss is
applied to the second preceding taxable year and if not absorbed, the
difference is applied to the first preceding taxable year. The loss not
absorbed in the carryback years is subtracted in the twenty (20) succeeding
taxable years, in order, until absorbed. (4-6-23)
05.
Timing and Method of Electing to
Forego Carryback For Taxable Years Beginning Before January 1, 2013.
(4-6-23)
a. Net operating losses incurred in
taxable years beginning on or after January 1, 2010. The election must be made
by the due date of the loss year return, including extensions. Once the
completed return is filed, the extension period expires. Unless otherwise
provided in the Idaho return or in an Idaho form accompanying a return for the
taxable year, the election referred to in this Subsection may be made by
attaching a statement to the taxpayer's income tax return for the taxable year
of the loss. The statement must contain the following information: (4-6-23)
i. The name, address, and taxpayer's social
security number or employer identification number; (4-6-23)
ii. A statement that the taxpayer makes the
election pursuant to Section
63-3022(c)(1),
Idaho Code, to forego the carryback provision; and (4-6-23)
iii. The amount of the net operating loss.
(4-6-23)
b. Attaching a
copy of the federal election to forego the federal net operating loss carryback
to the Idaho income tax return for the taxable year of the loss does not
constitute an election for Idaho purposes. (4-6-23)
c. If the election is made on an amended or
original return filed subsequent to the time allowed in Paragraph 201.05.a, it
is considered untimely. (4-6-23)
06.
Order in Which Losses Are Applied
in a Year. Loss carryovers are deducted before deducting any loss
carrybacks applicable to the same taxable year. (4-6-23)
07.
Documentation Required When
Claiming a Net Operating Loss Deduction. A taxpayer claiming a net
operating loss deduction for a taxable year must file with his return for that
year a concise statement setting forth the amount of the net operating loss
deduction claimed and all material and pertinent facts, including a detailed
schedule showing the computation of the net operating loss and its carryback or
carryover. (4-6-23)
08.
Conversion of C Corporation to S Corporation. An S corporation may
not carry over or back a net operating loss from a taxable year in which the
corporation was a C corporation. However, an S corporation subject to Idaho tax
on net recognized built-in gains or excess net passive income may deduct a net
operating loss carryover from a taxable year in which the corporation was a C
corporation against its net recognized built-in gain and excess net passive
income. (4-6-23)
