North Dakota Administrative Code Title 81 — Tax Commissioner

N.D. Admin. Code § 81-03-05.1-07

Net operating losses

Official textlegis.nd.govlast amended Jul 01, 2016

# 1.

A North Dakota net operating loss must be computed after the allocation and apportionment of a taxpayer's income or loss to North Dakota.

# 2.

A North Dakota net operating loss may be carried forward for the same number of years as a federal loss of like character, e.g., regular net operating loss, product liability loss, or foreign expropriation loss.

# 3.

If a corporation does not file a consolidated corporation income tax return pursuant to section 81-03-05.1-08, the corporation's North Dakota net operating loss may be carried forward even if: a. The ownership of the corporation in the loss year is not the same as the ownership in each of the years to which the loss is carried, e.g., the corporation is acquired by another corporation. b. The filing method used by the corporation in the loss year is not the same as the filing method used in each of the years to which the loss is carried, e.g., separate entity filing versus combined reporting.

# 4.

If a corporation files a consolidated corporation income tax return pursuant to section 81-03-05.1-08, a North Dakota net operating loss must be computed for each corporation included in the consolidated return for the year in which the loss was incurred. Each corporation included in the consolidated return must carry forward its net operating loss to the extent that it had North Dakota taxable income in the year to which the loss is carried.

# 5.

The commissioner may audit a North Dakota net operating loss and the taxable income of the year to which the loss is carried.

# 6.

A corporation may not carry forward its North Dakota net operating loss if the corporation has been dissolved as a separate corporate entity.

Amendment history

History: Effective December 1, 1993; amended effective July 1, 2016. General Authority: NDCC 57-38-56 Law Implemented: NDCC 57-38-01.3(2)(3)

Source: view the official PDF

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