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Instructions for Completing Schedule FIT-20NOL
Computation of Indiana Member’s Net Operating Loss Deduction
All taxpayers must complete and enclose this schedule with the ble, for the tax year.
Financial Institution Tax Return if they are claiming a net oper-
ating loss (NOL) deduction. The NOL that will be recognized for Line 3. Enter the combined amount of Indiana business income or
financial institution tax purposes will be the NOL apportioned to loss. Multiply the amount on line 1 by the apportionment percent-
Indiana for the taxable year of the loss. age on line 2.
An Indiana NOL incurred under the Financial Institution Tax Act Line 4. Enter the ratio of member’s Indiana receipts. Divide mem-
may be carried forward for 15 years following the loss year and ber’s Indiana receipts by receipts of entire unitary group attributed
applied in any year in which there is Indiana taxable income. to Indiana for year. Enter as a percent. See Indiana Code (IC)
There is no provision under the Financial Institution Tax Act for the 6-5.5-2-1(d)(1) and example below.
carryback of a net operating loss or capital loss. An Indiana NOL
incurred for adjusted gross income (AGI) tax purposes may not be Line 5. Enter each taxpayer member’s attributed Indiana income
applied to income subject to financial institutions tax. An Indiana or loss available to offset combined income or to reduce the
NOL must be used the first year available for the deduction. carryforward loss. Caution: The income or loss available is limited
to the amount of each taxpayer member’s portion of the receipts
Use the net operating loss computed under this schedule for attributable to Indiana. See example below. Use amount from line
a member who was not part of the combined group or when a 3 or multiply line 3 by ratio on line 4, if applicable.
member is no longer part of a combined group. To compute the
allowable net operating loss deduction, do the following: The total of each taxpayer member’s remaining share of the com-
bined group’s NOL deduction is applied on line 25 of Form FIT-20.
If the taxpayer is filing a combined return, any net capital loss However, the combined total may not exceed the taxable income
or net operating loss attributable to Indiana in the combined for the year.
return shall be prorated between each member of the unitary
group having nexus in Indiana by the quotient of: Loss Year Carryforwards Applied Against AGI
In the second column next to the appropriate loss year, enter the
(1) The Indiana receipts of those taxpayer members attribut- total Indiana NOL coinciding with line 3 for the corresponding loss
able to Indiana; divided by: year. When utilizing the NOL deduction for a particular loss year,
(2) The total receipts of all taxpayer members attributed to enter the amount of the deduction in the same column of the year
Indiana. A separate Schedule FIT-20NOL will be com- the loss is being applied against AGI.
pleted by each member to calculate their share of the
loss and amount available to be applied for the combined When calculating the AGI after the NOL deduction, subtract the
return. total deductions taken from the AGI and enter the amount on the
line titled “Adjusted Gross Income after NOL Deduction.” The
Completing FIT-20NOL amount cannot be less than 0.
Tax Year: Determine the years to which the NOL applies across
the top of the schedule. Enclose the complete schedule and any NOL worksheets with the
return when the NOL is being utilized.
Line 1. Enter the total adjusted gross income or (loss) from line
19 of the FIT-20.
Line 2. Enter the combined apportionment percentage, if applica-
Sample FIT-20NOL for Unitary Group - A form is to be completed by each member of a combined return filing FIT-20NOL.
Members A, B, and C are taxpayers under IC 6-5.5-1-17 and are required to be included in the combined return (IC 6-5.5-1-18) for the
2015 tax year.
Loss Year 2021 Member A Member B Member C Combined Total
AGI or (Loss) ($300,000) $300,000 ($400,000) Line 1. ($400,000)
IN Apportionment Line 2. 50%
Combined IN AGI (Loss) Line 3. ($200,000)
IN Receipts for A, B, & C $2,000,000 + $7,000,000 + $1,000,000 Total IN Receipts $10,000,000
Line 4. Ratio of IN Receipts 20% 70% 10% [IN Receipts of A, B, & C divided by total receipts]
Line 5. Available share of NOL
[Line 3 X line 4 of A, B, & C] ($40,000) ($140,000) ($20,000) Line 5. ($200,000)
Carryover Year 2022 (For tax year 2016, 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 Line 1. $400,000
IN Apportionment Line 2. 20%
Combined IN AGI (Loss) Line 3. $80,000
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 & B divided by total IN receipts]
Line 5. IN AGI
[Line 3 X line 4 of A & B] $48,000 $32,000
Applied share of 2015 NOL ($40,000) ($32,000) [$160,000 available] FIT-20NOL, line 25. $72,000
Taxable income $8,000 $ 0 FIT-20NOL, line 26. $8,000
NOL to carry forward $ 0 ($108,000) ($20,000)
*24100000000*
24100000000
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