35 Miss. Admin. Code Pt. III, Subpt. 5, Ch. 06 — Net Operating Loss

100 Taxpayers are allowed to carryover their net operating losses from a trade or business and
deduct such loss in the next five succeeding years. The carryover is first to the year
immediately following the loss year, then to the second year following the loss year, and so
on until the loss is exhausted, not to exceed five years. In instances where more than one
year's net operating loss is being carried over, the first year's loss must be carried over first
until exhausted before the second year's loss may be carried over, and subsequent years'
losses must be carried over in the same manner.
101 Taxpayers entitled to the net operating loss carryover are:

# 1.

Individuals

# 2.

Corporations (Except for regulated investment companies, and life and mutual
insurance companies other than marine).

# 3.

Estates and trusts

# 4.

Partners (to the extent of their allocable share of partnership net losses).
102 In order to qualify as an operating loss carryover under the provisions of Section
27-7-17(1)(l) of the Code, the loss to be carried over must have been incurred first; from
sources within the boundaries of the State of Mississippi, or from sources within the
jurisdictional boundaries of the Income Tax Laws of the State of Mississippi; and secondly,
the loss must have been reported as such on an income tax return filed with the State of
Mississippi for the year of the loss by the taxpayer claiming the loss carryover.
103 A net operating loss incurred by any taxpayer prior to becoming subject to the jurisdiction
of the Mississippi Income Tax Laws will not be allowed as a loss carryover deduction.
104 Taxpayers who under applicable provisions of the statute are allowed or required to
exclude income earned from sources outside of Mississippi, and taxpayers who are required
to use formulas in determining Mississippi taxable net income shall determine Mississippi
net operating losses in the same manner as Mississippi taxable net income is determined.
105 In making a claim for a net operating loss deduction, the taxpayer must file with its income
tax return for the year of such deduction, a concise statement setting forth all material and
pertinent facts related thereto; including a detailed schedule showing how the deduction
was computed. If more than one net operating loss is being carried over, this schedule must
be submitted for each loss year individually.
106 The Commissioner will follow Federal Rules, Regulations and Revenue Procedures to the
extent they are deemed not contrary to the context and intent of Mississippi Law.
107 (Reserved)
108 (Reserved)