63-3021. NET OPERATING LOSS. (a) The term "net operating loss" means the amount by which Idaho taxable income, after making the modifications specified in subsection (b) of this section, is less than zero (0).

(b) Add the following amounts:

(1) The amount of any net operating loss deduction included in Idaho taxable income.

(2) In the case of a taxpayer other than a corporation:

(i) Any amount deducted due to losses in excess of gains from sales or exchanges of capital assets; and

(ii) Any deduction for long-term capital gains provided by this chapter.

(3) Any deduction allowed under section 151 of the Internal Revenue Code (relating to personal exemption) or any deduction in lieu of any such deduction.

(4) Any deduction for the standard or itemized deductions provided for in section 63 of the Internal Revenue Code, or section 63-3022(j), Idaho Code, except for any deduction allowable under section 165(c)(3) of the Internal Revenue Code (relating to casualty losses) pertaining to property physically located inside Idaho at the time of the casualty.

(5) Any deduction allowed under section 199A of the Internal Revenue Code (relating to the deduction for qualified business income).

(c) Subject to the provisions of sections 381 and 382, Internal Revenue Code, Idaho net operating losses incurred by a corporation will survive a merger.

(1) Changes in the location of a loss corporation’s business or its key employees shall not be treated as a failure to satisfy the continuity of business requirements.

(2) If the premerger corporation conducted operations in Idaho and at least one (1) other state, the section 382, Internal Revenue Code, loss limitation is limited further by the premerger loss corporation’s Idaho apportionment factor for the last taxable year preceding the date of the merger.

History:

[63-3021, added 1989, ch. 27, sec. 2, p. 32; am. 1992, ch. 11, sec. 2, p. 18; am. 1995, ch. 111, sec. 8, p. 351; am. 1998, ch. 42, sec. 1, p. 175; am. 2000, ch. 38, sec. 3, p. 72; am. 2010, ch. 11, sec. 1, p. 12; am. 2018, ch. 46, sec. 2, p. 112; am. 2019, ch. 9, sec. 1, p. 8.]