56: Net Operating Loss Schedule 2024 (2024)
Idaho · Idaho Tax Commission · Used for tax years 2024
Idaho Form 56 is the 2024 Net Operating Loss Schedule. It uses Idaho adjusted income, loss carryforwards or carrybacks, and specified adjustments to calculate Idaho net operating losses and absorption income for years 2002 through 2024.
Who files this form
Include Form 56, or your own schedule, with your return for any year you compute an Idaho net operating loss (NOL).
Idaho allows an NOL deduction for individuals, C corporations, trusts, and estates. S corporations and partnerships cannot claim an NOL deduction themselves. Instead, losses pass through to shareholders and partners.
Special rules apply to affected business entities (ABEs). An ABE's NOL may be carried forward to later years when it elects to be taxed as an ABE, rather than passed through to its members. If it does not make that election in a succeeding tax year, the unused Idaho NOL flows through to the members.
What you'll need
Have the following information and forms available, as applicable:
- Names as shown on your return, your Social Security number or EIN, and the loss or absorption year.
- Your Idaho return for each year being calculated. For 2024, line 1 uses Form 40, line 11 for full-year residents; Form 43, line 31, column b for part-year residents and nonresidents; Form 66, line 7 minus line 8 for trusts and estates; Form 41S, line 43 or Form 65, line 41 for ABEs; or Form 41, line 37 for corporations.
- Idaho return schedules showing any NOL carryback or carryover deduction, Idaho capital gains deduction, and Idaho qualified business income deduction that applies to your calculation.
- Federal Schedule D for a net capital loss deduction, if applicable.
- Federal Schedule A for casualty losses on Idaho property included in itemized deductions, if applicable.
- Form 56A showing the NOL carryforward or carryback calculation, if applicable.
How to file
Include Form 56, or your own schedule, with the return for any year you compute an Idaho NOL. Also include Form 56A showing the NOL carryforward or carryback calculation, if applicable.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Using the federal NOL without Idaho adjustments. Idaho calculates its NOL differently. You must add back the NOL claimed on your federal income tax return.
- Using the wrong sign. Enter amounts on lines 2 through 5 as positive numbers when those lines apply. Enter qualifying casualty losses on line 6 as a negative number.
- Completing lines that do not apply. Corporations must skip lines 3 through 5. Corporations, trusts, estates, and ABEs must leave line 6 blank.
- Treating Ponzi scheme losses as casualty losses. These are theft losses, not casualty losses, and must be added back when determining the Idaho NOL.
- Using line 7 for an absorption year. Line 7 is for loss years only. For absorption years, skip line 7 and use line 8.
Questions people ask
What is an Idaho net operating loss?
An Idaho NOL occurs when Idaho taxable income, after modifications, is less than zero. You can use it by deducting it from income in another year or years.
What is the difference between a loss year and an absorption year?
A loss year is the year you incurred the loss. An absorption year is the year you use the NOL to offset income.
Can I use my own schedule instead of Form 56?
Yes. The instructions allow you to include Form 56 or your own schedule with the return for any year you compute an NOL.
What is Form 56A used for?
Form 56A is used to compute the Idaho NOL carryback or carryover. Include it with your return if applicable.