A net operating loss (NOL) occurs when the amount of Idaho taxable income, after making modifications, is less than zero. Idaho calculates the Idaho NOL differently than the federal NOL, so you must always add back the NOL claimed on your federal income tax return. Idaho allows a deduction to individuals, C corporations, trusts and estates. S corporations and partnerships aren’t allowed an NOL deduction. Instead, any losses pass through to the shareholders and partners.
You can use an NOL by deducting it from your income in another year or years.
Include Form 56 or your own schedule with the return for any year you carry the NOL to.