idaho form 39R, part A
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busmech99
New Member

idaho form 39R, part A

line 1 asks for net operating loss on Form 40, line 7.   $3,000

line 2 asks for capital loss carryover. Instructions

indicate total amount should be entered.                  $110,626

Line 7 asks for sum                                                           $113,626

This sum is result on Form 40, line 8 and becomes part of my adjusted gross income for state of Idaho.

If this is correct, I will be paying tax on this "income" for years to come.

However, TurboTax did not fill in Form 40, line 20 with the result from the tax table.

 

2 Replies
ThomasM125
Employee Tax Expert

idaho form 39R, part A

I think you might have Net Operating Loss (NOL) confused with capital loss. A NOL would result in you having more business losses than personal income, so the net loss would be carried over or back to other years. It would only be deductible in the current year to reduce your taxable income to $0 maximum, and any residual would be carried over to the next year.

 

A capital loss is a loss on investment sales typically, and is only deductible against capital gains and then up to $3,000 in the current year. The remainder gets carried over to future years.

 

Form 39R A(1) is asking for your NOL applicable to the current year. Line (2) is asking for your deductible capital loss applicable to the current year. I think the $110,626 may be your unused capital loss, in which case you should only enter $3,000 in line 2. Otherwise, your federal taxable income would be $0 most likely, as you had deducted $110,626 in NOL in the current year, and Idaho would be adding that back for the current year only.

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busmech99
New Member

idaho form 39R, part A

Thanks for answering. I believe what you describe is what it should be, but I am following the directions.

      Form 39, part A, line 1:

Federal net operating loss deduction included on Form 40, line 7.  (-$3000)

     Form 39, part A, line 2:

Capital loss carryover incurred outside the state before becoming an Idaho resident.  (--$110,646)

    Form 39, part A, line 7:

Total lines 1 through 6. Enter here and on Form 40, line 8.

 

The result of this causes form 40 line 19 to increase from $0 to $87,000.

 

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