ALABAMA DEPARTMENT OF REVENUE
Net Operating Loss Deduction not Applicable to an Alabama S Corporation
TABLE OF CONTENTS
810-3-168-.01 Net Operating Loss Deduction for S Corporations
(1) No net operating loss carryback or carryforward deduction is allowable for an Alabama S corporation. See Rule 810-3-161-.01 and 810-3-35.1-.01.
(2) No carryforward and no carryback shall arise at the corporate level for a taxable year for which a corporation is an Alabama S corporation.
(3) The taxable year that a corporation is an Alabama S corporation may be considered in determining the number of taxable years which a net operating loss item can be carried back or carried forward.
(4) See also Rule 810-3-174-.02, Built-in Gains Tax.
Author: Ed Cutter, CPA and Ann Winborne, CPA Authority: §§ 40-2A-7(a)(5) and 40-18-168, Code of Alabama 1975 History: Adopted November 13, 1985. Amended: Filed March 31, 2000, effective May 5, 2000.