Form Fit-20 - Financial Institution Tax Booklet - 2013 Page 26
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30Instructions for Schedule FIT-20NOL
Computation of Indiana Member's Net Operating Loss Deduction
All taxpayers must complete and enclose this schedule with the Financial
Institution Tax Return if they are claiming a net operating loss (NOL) deduc-
tion. The NOL that will be recognized for financial institution tax purposes
will be the NOL apportioned to Indiana for the taxable year of the loss.
An Indiana NOL incurred under the Financial Institution Tax Act may
be carried forward for 15 years following the loss year and applied in any
year in which there is Indiana taxable income. There is no provision under
the Financial Institution Tax Act for the carryback of a net operating loss or
capital loss.
Use basic federal Separate Return Limitation Year (SRLY) rules when
one or more members of the unitary group in which the taxpayer incurred
a loss in the year where they were not part of the unitary group, into a year
when they were part of the unitary group as follows:
If the taxpayer is filing a combined return, any net capital loss or net
operating loss attributable to Indiana in the combined return shall be prorated
between each member of the unitary group having nexus in Indiana by the
quotient of:
(A) The Indiana receipts of those taxpayer members attributable to
Indiana; divided by:
(B) The total receipts of all taxpayer members attributed to Indiana.
A separate FIT-20NOL worksheet will be completed by each
member to calculate their share of the loss and amount available
to be applied for the combined return.
Completing FIT-20NOL
Tax Year: Determine the years to which the NOL applies across the top of
the schedule. The first year that a loss could be carried forward under the
act is for taxable years beginning after Dec. 31, 1989.
Sample NOL Worksheet for Unitary Group - A worksheet is to be completed by each member of a combined return filing FIT-20NOL.
Members A and B are taxpayers under IC 6-5.5-1-17. Member C is not a taxpayer but is required to be included in the combined return (IC 6-5.5-1-18).
Loss Year 2012
Member A
Member B
Member C
Combined Total
AGI or (Loss)
($300,000)
$300,000
($400,000)
($400,000)
Line 1.
IN Apportionment
50%
Line 2.
Combined IN AGI (Loss)
($200,000)
Line 3.
IN Receipts for A & B
$2,000,000
+
$8,000,000
=
Total IN Receipts
$10,000,000
Line 4. Ratio of IN Receipts
20%
80%
[Receipts of A and B divided by total IN receipts]
Line 5. Available share of NOL
[Line 3 X line 4 of A & B]
($40,000)
($160,000)
($200,000)
Line 5.
Carryover Year 2013 (Effective Jan. 1, 2012, member C is no longer required to be included in the combined return (IC 6-5.5-1-18(a).)
AGI or (Loss)
$500,000
($100,000)
N/A
$400,000
Line 1.
IN Apportionment
20%
Line 2.
Combined IN AGI (Loss)
$80,000
Line 3.
IN Receipts for A & B
$6,000,000
+
$4,000,000
=
Total IN Receipts
$10,000,000
Line 4. Ratio of IN Receipts
60%
40%
[Receipts of A and B divided by total IN receipts]
Line 5. IN AGI
[Line 3 X line 4 of A & B]
$48,000
$32,000
($40,000)
($32,000) [$160,000 available]
$72,000
Applied share of 2012 NOL
Return Line 24.
$8,000
$ 0
$8,000
Taxable income
Return Line 25.
$ 0
($128,000)
and NOL to carry forward
Sample FIT-20NOL for Combined Unitary Group
Tax Year
2009
2010
2011
2012
2013
2014
2015
1. Total AGI or (Loss)
(200,000)
200,000
300,000
(400,000)
400,000
400,000
400,000
2. Combined Apportionment %
70%
50%
80%
50%
20%
25%
40%
3. Combined IN AGI or (Loss)
(140,000)
100,000
240,000
(200,000)
80,000
100,000
160,000
4. Member's Share of IN Receipts %
(Used for worksheet purposes only - see unitary 2012 & 2013 examples above)
5. Member's Share of IN AGI or (Loss)
(140,000)
100,000
240,000
(200,000)
80,000
100,000
160,000
Loss Year
Indiana NOL
2001-2008
2009
140,000
100,000
40,000
2010
2011
2012
200,000
72,000
100,000
28,000
2013
2014
2015
Adjusted Gross Income
After NOL Deduction
0
200,000
8,000
0
132,000
*24100000000*
24100000000
24
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