Section 6-3-1-40 - "Separately stated net operating loss"(a) The term "separately stated net operating loss" means a federal net operating loss, or a portion of a federal net operating loss, determined according to the Internal Revenue Code that is:(1) computed as an allowable federal net operating loss with regard to a taxable year; and(2) required to be carried forward or carried back under the Internal Revenue Code; regardless of whether the taxpayer had federal taxable income for the year of the loss.
(b) A separately stated net operating loss for a taxable year includes:(1) an excess business loss for the taxable year under Section 461(l) of the Internal Revenue Code;(2) a federal net operating loss for a trade or business that is not allowable in the taxable year in which the loss was incurred as a result of the application of Section 512(a)(6)(C) of the Internal Revenue Code, with the federal net operating loss determined separately for each trade or business; and(3) a federal net operating loss that is not affected by excess inclusion income under Section 860E of the Internal Revenue Code.(c) For purposes of IC 6-3-2-2.5 and IC 6-3-2-2.6, a separately stated net operating loss must be expressed as a negative number.Added by P.L. 194-2023,SEC. 10, eff. 5/4/2023.