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Form 56 — Instructions
Net Operating Loss Schedule
General Instructions For tax years 2018 through 2020, this is
A net operating loss (NOL) occurs when the Form 40, line 12
amount of Idaho taxable income, after making
Part-year and nonresidents:
modifications, is less than zero. Idaho calculates
For tax year 2000, this is Form 43, line 45,
the Idaho NOL differently than the federal NOL,
so you always must add back the NOL claimed column b
on your federal income tax return. Idaho allows For tax years 2001 through 2008, this is
a deduction to individuals, C corporations, trusts, Form 43, line 34, column b
and estates. S corporations and partnerships aren’t For tax year 2009, this is Form 43, line 33,
allowed an NOL deduction. Instead, any losses column b
pass through to the shareholders and partners. For tax years 2010 through 2017, 2021 and
You can use an NOL by deducting it from your 2022, this is Form 43, line 31, column b
income in another year or years. For tax years 2018 through 2020, this is
A net operating loss calculated by an affected Form 43, line 32, column b
business entity (ABE) may not be passed through Trusts and Estates:
to its member, but may be carried forward as an
• Enter the Idaho taxable income (loss) before the
Idaho net operating loss to succeeding taxable
exemption deduction.
years for which the ABE elects to be subject to tax
For tax year 2000, this is Form 66, line 15
as an ABE.
For tax year 2001, this is Form 66, line 12
If the ABE does not make an ABE election in any
succeeding taxable year, the unused Idaho net For tax years 2002 through 2019, this is
operating loss will flow through to the members. Form 66, line 7
For tax years 2020 through 2022, this is
Include Form 56 or your own schedule with the
Form 66, line 7 minus line 8
return for any year you compute an NOL. Also,
include Form 56A showing the NOL carryforward/ ABEs:
carryback calculation, if applicable. • For tax years 2021 and 2022, this is Form 41S,
line 43 or Form 65, line 41.
Specific Instructions
Corporations:
Calculation of Idaho NOL
• Enter the Idaho taxable income (loss) from
Complete lines 1 through 8 to compute and use Form 41.
your Idaho NOL.
For tax year 2000, this is Form 41, line 36
Corporations—skip lines 3 through 5. For tax years 2001 through 2003, this is
Trusts, estates, and ABEs—skip lines 4 and 5. Form 41, line 35
An absorption year is the year you use the NOL to For tax years 2004 through 2022, this is
offset your income. An NOL year is the year you line 37.
incurred a loss.
Line 2. Add any Idaho NOL carryback/carryover
Line 1. The calculation of the Idaho NOL starts with deduction for losses from prior years. Enter the
Idaho adjusted income. Enter the Idaho adjusted amount as a positive number.
income (loss). Individuals:
Individuals: Full-year residents:
Full-year residents: Form 39R, section B, line 1
For tax year 2000, this is Form 40, line 30 Part-year and nonresidents:
For tax years 2001 through 2009, this is Form 39NR, section B, line 1
Form 40, line 13
Trusts and Estates:
For tax years 2010 through 2017, 2021 and
• For tax year 2000, this is line 10
2022, this is Form 40, line 11
• For tax year 2001, this is line 7
EIN00022 08-15-2022 Page 1 of 2
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