Did you know:
- a majority of states calculate state net operating losses (NOL) on a post-apportionment basis
- a handful of states calculate state NOLs on a pre-apportionment basis
- some states have no state NOL independent of the federal NOL, but may require adjustments to the federal NOL
- 29 States do not allow NOL carrybacks
- 3 States allow NOLs to be carried back 3 years
- 13 States allow NOL carrybacks to same extent as federal law or allows NOLs to be carried back 2 years
- Approximately 26 States allow NOLs to be carried forward 15 or 20 years
- 3 States allow NOLs to be carried forward 5 or 7 years
- 5 States allow NOLs to be carried forward 10 or 12 years
- 11 States allow NOLs to be carried forward to same extent as federal law
- combined reporting and consolidated returns create tracking (by entity) issues due to NOL sharing limitations
Can you name the above states?
Which states cause you the greatest despair when it comes to net operating losses?
Does your company struggle with tracking and managing the utilization of net operating losses?
What's your greatest concern regarding state net operating losses - (1) utilization, (2) audits or (3) provision?
I have been conducting a great deal of research regarding state net operating losses during the past year, covering all of the nuances that create complexity. If your company has to deal with managing state net operating losses, I feel for you. Keep fighting. The struggle is real. Check out this article by Bloomberg BNA, "Leaping the Hurdles to Track State Net Operating Losses."