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Form 56A — Instructions
Net Operating Loss Application
Carryback/Carryover of Idaho NOL must carry the Idaho NOL forward. You can carry
For a corporation with multiple entities forward the remaining amount and apply it to the
operating in Idaho, each entity with Idaho activity next 20 years until the NOL is fully absorbed.
can carryback $100,000 of NOL, up to the amount
of Idaho taxable income per entity in the year For losses incurred after January 1, 2000, and
carried back. before January 1, 2013, you must carry back the
Idaho NOL and apply it to the prior two years. You
For an affected business entity (ABE), a can carry forward the remaining amount and apply it
net operating loss must be carried forward to to the next 20 years until the NOL is fully absorbed.
succeeding taxable years. If the ABE doesn’t make You can carry back a maximum of $100,000
the election to be an ABE in any succeeding taxable ($50,000 if you’re filing as married filing separately)
year, the unused net operating loss will flow through of Idaho NOL. You must carry forward any Idaho
to the members.
NOL in excess of $100,000.
For losses incurred after January 1, 2013, you
only have one year from the end of the loss year to
file an amended return to carry back the Idaho NOL
and apply it to the prior two years. After that, you
Application of an NOL (Example)
In this example, 2022 is the loss year. The loss amount is ($249,000) (shown on line 7). The taxpayer has Idaho
absorption income of $73,500 in 2020 and $44,900 in 2021 (shown on line 8). $73,500 of the ($249,000) loss
is used in 2020. Since the carryback is limited to $100,000, only $26,500 of the loss can be used in 2021. The
remainder of the loss ($149,000) is available to be used in the next 20 years (remaining loss).
Loss or Absorption Year 2019 2020 2021 2022
1. Idaho adjusted income per return ....................... 70,500 32,900 (257,000)
2. Idaho net operating loss carryforward/carryback.
Enter as positive ..................................................
3. Net capital loss. Enter as positive ......................... 3,000
4. Idaho capital gains deduction.
Enter as positive .................................................. 12,000 8,000
5. Idaho qualified business income deduction. Enter
as positive. (For years beginning in 2019.) ..........
6. Casualty losses on Idaho property included in
itemized deductions. Enter as negative ...............
7. Idaho net operating loss.
Add lines 1 through 6 ........................................... (249,000)
8. Idaho absorption income.
Add lines 1 through 6 ........................................... 73,500 44,900
Loss or Absorption Year 2019 2020 2021 2022
1. Idaho loss. Form 56, line 7 .................................. (249,000)
2. Idaho absorption income. Form 56, line 8 ............. 73,500 44,900
Carryback
3. Loss used in 2nd preceding year ......................... (73,500) (26,500)
4. Loss used in 1st preceding year ..........................
28. Remaining loss. .................................................... (149,000)
29. Total carryover loss remaining ...............................
Contact us:
In the Boise area: (208) 334-7660 | Toll free: (800) 972-7660
Hearing impaired (TDD) (800) 377-3529
tax.idaho.gov/contact
EIN00108 11-17-2022
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