[Revenews] NOL - Personal Income Tax

[PURKEYPILE Steve]

Oregon Department of Revenue

Personal Tax and Compliance Division 

Program Services Section

Policy & Systems Unit

Tax Policy Update
04/02/09


Net Operating Loss (NOL) - Personal Income Tax


For personal income tax purposes, Oregon is connected to the federal NOL
carryback rules that were recently updated by the American Recovery and
Reinvestment Act of 2009. NOL carrybacks and carryforwards are covered
under ORS 316.014 which provides a rolling tie to federal carryback and
carryforward laws in the IRC. As of today, this statute has not been
changed by the legislature. For personal income tax purposes, Oregon
allows the same carryback provisions for a 2008 NOL as allowed by the
IRS (which is a choice of 2, 3, 4, or 5 years carryback). The taxpayer
must use the same NOL carryback or carryforward for Oregon that is used
for federal purposes unless the taxpayer does not have enough income to
absorb the NOL in that year.  In such cases, the NOL may be carried
forward consistent with federal limits.  

 

 

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