Instructions For Idaho Form 56 printable pdf download

EIN00022

08-21-13

Instructions for Idaho Form 56

GENERAL INSTRUCTIONS

Individuals — Add back any:

● NOL carryovers deducted from previous years

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

taxable income, after making modifications discussed

● Federal net capital losses deducted

● Idaho capital gains deduction

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

and estates are allowed a deduction in computing Idaho

taxable income for an Idaho NOL. S corporations and

Subtract any:

partnerships are not allowed an NOL deduction. Instead,

● Casualty losses on Idaho property included in itemized

any losses are passed through to the shareholders and

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 twenty

such as losses resulting from Ponzi schemes, are

succeeding taxable years unless an amended return

considered theft losses, not casualty losses, and must

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

be added back in determining the amount of an Idaho

of the taxable year of the net operating loss that results in

NOL.

the carryback. If an amended return is filed to carry the

loss back, the loss is first applied to the second tax year

Trusts and estates — Add back any:

preceding the loss year. Any loss not fully subtracted or

absorbed from Idaho income is next applied to the first

● NOL carryovers deducted from previous years

● Federal net capital losses deducted

preceding tax year. The loss carried back is limited to

a maximum of $100,000. Any remaining loss may be

carried forward until used, but not longer than twenty

Corporations — Add back any NOL carryovers deducted

years. Losses carried forward are applied to each year in

from previous years

order until absorbed.

APPLICATION OF AN NOL

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

Use the NOL Application section to show how your NOL is

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

being applied to the carryback and carryover years. You

an NOL back to the two preceding tax years unless you

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

made a timely election to forgo the carryback period. The

The Form 56 or your own schedule must be included with

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

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

remaining loss may be carried forward until used, but not

longer than twenty years.

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

was previously filed, you must file an amended Idaho

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

return to report the NOL carryback and request a refund.

generally must carry an NOL back to the three preceding

File the appropriate form for each tax year to which the

tax years unless you made a timely election to forgo the

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

carryback period. The carryback is limited to a maximum

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

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

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

until used, but not longer than 15 years.

your Idaho taxable income, Idaho tax liability, and any

nonrefundable tax credits claimed. Include a copy of

CALCULATION OF NOL AND INCOME AVAILABLE

Form 56 or a schedule showing the application of the loss

FOR ABSORPTION

with your amended return.

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

an absorption year. Certain adjustments must be made

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

to taxable income or loss to calculate the NOL and how

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

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

much income is available for absorption in the year to

which the NOL is carried back or carried forward.

amended return for absorption year(s).

To compute the NOL, the following adjustments need to

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

amended return carrying the loss back must be filed within

be made:

one year of the end of the taxable year of the loss that

results in the carryback.

Instructions For Idaho Form 56

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