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How Do I Determine my Oklahoma Net Operating Loss?

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Question
How Do I Determine my Oklahoma Net Operating Loss?

Answer

The loss year return must be filed to establish the Oklahoma Net Operating Loss. Use the 511NR-NOL schedules. When there is a federal net operating loss (NOL), an Oklahoma NOL must be computed as if all the income were earned in Oklahoma. The figures from the “Federal Amount” column are used for this computation. The loss is carried as an Oklahoma NOL and deductible in the “Federal Amount” column. The true Oklahoma NOL is computed using the figures from the “Oklahoma Amount” column and shall be allowed without regard to the existence of a Federal NOL. The loss is carried as an Oklahoma NOL and deductible in the “Oklahoma Amount” column. For tax years 2001 – 2007 and tax years 2009 and subsequent, the years to which an NOL may be carried shall be determined solely by reference to Section 172 of the Internal Revenue Code (IRC.) For tax year 2008, the years to which an NOL may be carried back shall be limited to two years.

An NOL resulting from a farming loss may be carried back in accordance with and to the extent of IRC Section 172(b) (G). However, the amount of the NOL carryback shall not exceed the lesser of: $60,000, or the loss properly shown on the Federal Schedule F reduced by half of the income from all other sources other than reflected on Schedule F. You can choose to treat the NOL as if it were not a farming loss. If you make this choice, the carryback period will be determined by reference to IRC Section 172 and the amount of the NOL carryback will not be limited.

An election may be made to forego the carryback period. A written statement of the election must be part of the original timely filed Oklahoma loss year return. However, if you filed your return on time without making the election, you may still make the election on an amended return filed within six
months of the due date of the original return (excluding extensions). Attach the election to the amended return. Once made, the election is irrevocable.
The Federal NOL allowed in the current tax year reported on Schedule 511NR-1, line 15 (other income), shall be added on Schedule 511NR-A, line 3 (Oklahoma additions) in the appropriate column. Enter as a positive number. The Oklahoma NOL(s) shall be subtracted on Schedule 511NRB, line 9 (Oklahoma subtractions) in the appropriate column. There is also a space provided to enter the loss year(s).


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Views: 1098 Created on: Jun 15, 2013
Date updated: Sep 15, 2015
Posted in: STATES, Oklahoma

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