LAC 61:I.1302 — Nonresident Net Operating Losses

A. Nonresident individuals may carry back or carry over Louisiana net operating losses. Louisiana net operating losses may be carried and used in the same manner that would be allowed for federal purposes if the nonresident individual's federal returns consisted of only the Louisiana items of income and loss.
B. Application
1. The years to which Louisiana net operating losses may be carried are the same as they are for federal personal income tax purposes.
2. Net operating loss carrybacks and carryovers are considered an adjustment to Louisiana income and must be applied against total Louisiana income before applying any deductions.
C. Limitations
1. A Louisiana net operating loss carryback or carryover cannot include any amount that has already been deducted for Louisiana purposes.
2. Nothing in this Section authorizes a federal income tax deduction for income that did not bear Louisiana personal income tax.
D. Documentation for claiming the deduction
1. When a year produces a Louisiana net operating loss, a pro forma Federal Form 1040 showing how the Louisiana NOL was calculated must be attached to the return at the time of filing.
2. When a net operating loss carryback or carryover is used you must mark the “NOL” box on the face of the return and the following documentation must be attached to the return at the time of filing:
a. a schedule showing:
i. the taxable year in which each loss that is being carried back or carried over occurred; and
ii. the amount of each loss applied to each taxable year to which it was carried over or carried back.
b. a pro forma Federal Form 1040 showing the utilization of the Louisiana net operating loss; and
c. a pro forma Federal Form 1040 for the year producing the Louisiana net operating loss if it was not provided for the year in which it was produced.
3. When federal law provides for the carryback of a net operating loss:
a. If an amended return is being filed to carryback a Federal net operating loss, you must mark the “Amended Return” box on the face of the return and attach an explanation of the change and a copy of the federal amended return, Federal Form 1040X, or Federal Form 1045 whichever was filed.
b. If an amended return is being filed to carryback a federal and Louisiana net operating loss, you must mark the “Amended Return” and “NOL” box on the face of the return; attach the schedule required by Subparagraph (2)(a) of this Subsection, a copy of the federal amended return, Federal Form 1040X or Federal Form 1045 whichever was filed; and a pro forma Federal Form 1040 to show how the Louisiana net operating loss was utilized.
4. The accrual of interest shall be suspended during any period of time that a delay in the issuance of a refund is attributable to the taxpayer’s failure to provide information or documentation required herein, as provided by R.S. 47:1624(F).