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Form 56 — Instructions
Net Operating Loss Schedule 2023
General Instructions For tax years 2018 through 2020, this is
A net operating loss (NOL) occurs when the Form 40, line 12
amount of Idaho taxable income, after making
Part-year and nonresidents:
modifications, is less than zero. Idaho calculates
For tax years 2001 through 2008, this is
the Idaho NOL differently than the federal NOL,
so you always must add back the NOL claimed Form 43, line 34, column b
on your federal income tax return. Idaho allows For tax year 2009, this is Form 43, line 33,
a deduction to individuals, C corporations, trusts, column b
and estates. S corporations and partnerships aren’t For tax years 2010 through 2017, and 2021
allowed an NOL deduction. Instead, any losses through 2023, this is Form 43, line 31, column
pass through to the shareholders and partners. b
You can use an NOL by deducting it from your For tax years 2018 through 2020, this is
income in another year or years. Form 43, line 32, column b
A net operating loss calculated by an affected Trusts and Estates:
business entity (ABE) may not be passed through • Enter the Idaho taxable income (loss) before the
to its member, but may be carried forward as an exemption deduction.
Idaho net operating loss to succeeding taxable For tax year 2001, this is Form 66, line 12
years for which the ABE elects to be subject to tax
For tax years 2002 through 2019, this is
as an ABE.
Form 66, line 7
If the ABE does not make an ABE election in any
For tax years 2020 through 2023, this is
succeeding taxable year, the unused Idaho net
Form 66, line 7 minus line 8
operating loss will flow through to the members.
ABEs:
Include Form 56 or your own schedule with the
return for any year you compute an NOL. Also, • For tax years 2021 through 2023, this is Form
include Form 56A showing the NOL carryforward/ 41S, line 43 or Form 65, line 41.
carryback calculation, if applicable. Corporations:
• Enter the Idaho taxable income (loss) from
Specific Instructions Form 41.
Calculation of Idaho NOL For tax years 2001 through 2003, this is
Complete lines 1 through 8 to compute and use Form 41, line 35
your Idaho NOL. For tax years 2004 through 2023, this is
Corporations—skip lines 3 through 5. line 37.
Trusts, estates, and ABEs—skip lines 4 and 5. Line 2. Add any Idaho NOL carryback/carryover
An absorption year is the year you use the NOL to deduction for losses from prior years. Enter the
offset your income. An NOL year is the year you amount as a positive number.
incurred a loss. Individuals:
Line 1. The calculation of the Idaho NOL starts with Full-year residents:
Idaho adjusted income. Enter the Idaho adjusted Form 39R, section B, line 1
income (loss). Part-year and nonresidents:
Individuals: Form 39NR, section B, line 1
Full-year residents: Trusts and Estates:
For tax years 2001 through 2009, this is • For tax year 2001, this is line 7
Form 40, line 13 • For tax years 2002 and 2003, this is
For tax years 2010 through 2017, and 2021 Schedule B, line 6
through 2023, this is Form 40, line 11 • For tax years 2004 through 2006, this is
Schedule B, line 7
EIN00022 09-18-2023 Page 1 of 2
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