Instructions For Idaho Form 56 printable pdf download

EIN00022

Instructions for Idaho Form 56

06-25-14

GENERAL INSTRUCTIONS

Individuals — Add back any:

A net operating loss (NOL) is the amount that Idaho

● NOL carryovers deducted from previous years

taxable income, after making modifications discussed

● Federal net capital losses deducted

later, is less than zero. Individuals, C corporations, trusts,

● Idaho capital gains deduction

and estates are allowed a deduction in computing Idaho

taxable income for an Idaho NOL. S corporations and

Subtract any:

partnerships aren’t allowed an NOL deduction. Instead,

any losses are passed through to the shareholders and

● Casualty losses on Idaho property included in itemized

partners.

deductions

A net operating loss incurred in tax years beginning on

Losses reported on Section B of federal Form 4684,

or after January 1, 2013, will be subtracted in the 20

such as losses resulting from Ponzi schemes, are

succeeding tax years unless an amended return carrying

considered theft losses, not casualty losses, and must

the loss back is filed within one year of the end of the tax

be added back in determining the amount of an Idaho

year of the net operating loss that results in the carryback.

NOL.

If an amended return is filed to carry the loss back, the

loss is first applied to the second tax year preceding

Trusts and estates — Add back any:

the loss year. Any loss not fully subtracted or absorbed

from Idaho income is next applied to the first preceding

● NOL carryovers deducted from previous years

tax year. The loss carried back is limited to a total of

● Federal net capital losses deducted

$50,000 for an individual filing as married filing separately

or $100,000 for individuals filing as married filing jointly.

Corporations — Add back any NOL carryovers deducted

Any remaining loss may be carried forward until used, but

from previous years

not longer than twenty years. Losses carried forward are

applied to each year in order until absorbed.

APPLICATION OF AN NOL

Use the NOL Application section to show how your NOL is

For tax years beginning on or after January 1, 2000,

being applied to the carryback and carryover years. You

and prior to January 1, 2013, you generally must carry

may use your own schedule if it’s more helpful to you.

an NOL back to the two preceding tax years unless you

The Form 56 or your own schedule must be included with

made a timely election to forgo the carryback period. The

the return for any year to which the NOL is carried.

carryback is limited to a maximum of $100,000. Any

remaining loss may be carried forward until used, but not

If the NOL is carried back to a tax year for which a return

longer than twenty years.

was previously filed, you must file an amended Idaho

return to report the NOL carryback and request a refund.

For tax years beginning prior to January 1, 2000, you

File the appropriate form for each tax year to which the

generally must carry an NOL back to the three preceding

NOL is being applied. Check the “Amended Return” box if

tax years unless you made a timely election to forgo the

available at the top of the form, or if not on the form, write

carryback period. The carryback is limited to a maximum

“Amended Return” at the top of the form. Recompute

of $100,000. Any remaining loss may be carried forward

your Idaho taxable income, Idaho tax liability, and any

until used, but not longer than 15 years.

nonrefundable tax credits claimed. Include a copy of

Form 56 or a schedule showing the application of the loss

CALCULATION OF NOL AND INCOME AVAILABLE

with your amended return.

FOR ABSORPTION

Each year to which an NOL is applied is referred to as

For tax years beginning prior to January 1, 2013, if you

an absorption year. Certain adjustments must be made

are carrying back the loss, you have until the 15th day of

to taxable income or loss to calculate the NOL and how

the 40th month following the end of the loss year to file the

much income is available for absorption in the year to

amended return for absorption year(s).

which the NOL is carried back or carried forward.

For tax years beginning on or after January 1, 2013, an

To compute the NOL, the following adjustments need to

amended return carrying the loss back must be filed within

be made:

one year of the end of the tax year of the loss that results

in the carryback.

Instructions For Idaho Form 56

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