43-1123. Net operating loss;
definition
A. As used in this section, "net operating loss" means:
1. In the case of a taxpayer who has a net operating loss for the taxable year
within the meaning of section 172(c) of the internal revenue code, the amount of the net
operating loss increased by the subtractions specified in section 43-1122, except the
deduction allowed in section 43-1122, paragraph 7, and reduced by the additions specified
in section 43-1121.
2. In the case of a taxpayer not described in paragraph 1 of this subsection, any
excess of the subtractions specified in section 43-1122, except the deduction allowed in
section 43-1122, paragraph 7, over the sum of the Arizona gross income plus the additions
specified in section 43-1121.
B. If for any taxable year the taxpayer has a net operating loss, such net
operating loss shall be a net operating loss carryover for each of the five succeeding
taxable years, except that the carryover in the case of each such succeeding taxable
year, other than the first succeeding taxable year, shall be the excess, if any, of the
amount of such net operating loss over the sum of the taxable income for each of the
intervening years computed by determining the net operating loss deduction for each
intervening taxable year, without regard to such net operating loss or to the net
operating loss for any succeeding taxable year.
C. The amount of the net operating loss deduction shall be the aggregate of the net
operating loss carryovers to the taxable year.
|