A net operating loss (NOL) is the amount that Idaho taxable income, after making modifications discussed later, is less than zero. Individuals, C corporations, trusts, and estates are allowed a deduction in computing Idaho taxable income for an Idaho NOL. S corporations and partnerships aren’t allowed an NOL deduction. Instead, any losses are passed through to the shareholders and partners.
A net operating loss incurred in tax years beginning on or after January 1, 2013, will be subtracted in the 20 succeeding tax years unless an amended return carrying the loss back is filed within one year of the end of the tax year of the net operating loss that results in the carryback. If an amended return is filed to carry the loss back, the loss is first applied to the second tax year preceding the loss year. Any loss not fully subtracted or absorbed from Idaho income is next applied to the first preceding tax year. The loss carried back is limited to a total of $50,000 for an individual filing as married filing separately or $100,000 for individuals filing as married filing jointly. Any remaining loss may be carried forward until used, but not longer than twenty years. Losses carried forward are applied to each year in order until absorbed.
Form 56 Instructions