North Dakota Administrative Code
Title 81 - Tax Commissioner
Article 81-03 - Income Taxes and Privilege Taxes Based on Income
Chapter 81-03-05.1 - Income Tax on Corporations
Section 81-03-05.1-07 - Net operating losses

1. A North Dakota net operating loss must be computed after the allocation and apportionment of a taxpayer's income or loss to North Dakota.

2. A North Dakota net operating loss may be carried forward for the same number of years as a federal loss of like character, e.g., regular net operating loss, product liability loss, or foreign expropriation loss.

3. If a corporation does not file a consolidated corporation income tax return pursuant to section 81-03-05.1-08, the corporation's North Dakota net operating loss may be carried forward even if:

4. If a corporation files a consolidated corporation income tax return pursuant to section 81-03-05.1-08, a North Dakota net operating loss must be computed for each corporation included in the consolidated return for the year in which the loss was incurred.

Each corporation included in the consolidated return must carry forward its net operating loss to the extent that it had North Dakota taxable income in the year to which the loss is carried.

5. The commissioner may audit a North Dakota net operating loss and the taxable income of the year to which the loss is carried.

6. A corporation may not carry forward its North Dakota net operating loss if the corporation has been dissolved as a separate corporate entity.