In general, ACE is comprised of AMTI before the ACE adjustment and any AMT Net Operating Loss deduction
, plus or minus several adjustments relating to corporate earnings and profits.
Net Operating Loss Deduction
. A combined group of New York S corporations may not include in its combined net operating loss deduction
any net operating loss sustained during a New York C year or during a New York S year beginning prior to 1990.
Positive adjustments include capital loss carryovers and carrybacks, the net operating loss deduction
, and the dividends-received deduction.
The instructions for New Jersey franchise tax Form CBT-100S indicate clearly that if a corporate net operating loss is being carried forward from a previous year, it is first to be included as a deduction in Schedule A-1 of the current year's tax return, from which it will then be carried forward to Schedule A, Page 2, Item 38, as a part of the future net operating loss deduction
. These instructions further indicate that any unused net operating loss for any taxable year ending after June 30, 1984, may be car-tied forward as a net operating loss deduction
to a succeeding year for the statutory period of seven years.
US 1072, in which it was held that an embezzler could not claim a net operating loss deduction
for repayment of embezzled funds, as embezzlement was not a "trade or business" for Sec.
If no election is made, the depreciation expense will produce no current benefit (but could generate a net operating loss deduction
"Net passive income" equals passive investment income less deductions directly connected with the production of such income (not including the dividends received deduction and the net operating loss deduction
It is due to a recently discovered problem in taxpayers' reporting of the "net operating loss deduction
." See revised 1998 data in Figure A, and refer to the section, "Adjustments to Taxpayer Misreporting of Net Operating Loss Deduction
," for an explanation of how erroneous taxpayer reporting of this deduction has affected previous years' statistics and how this was corrected during SOI processing of Tax Year 1999 returns that are the basis for this article.
Alimony is a nonbusiness deduction regardless of the source of the payment and whether or not the payor has taxable income, although it cannot generate a net operating loss deduction
. The parties can elect to treat payments otherwise qualifying as alimony as though they did not constitute alimony, effectively disregarding the transfer for tax purposes.
Schedule M-1 reconciliation does not include the net operating loss deduction
or other special deductions such as the deduction for dividends received as these two items are subtracted from tax net income in order to determine "income subject to tax," the actual tax base.
More than one-fifth of total deductions was accounted for by the $60.4-billion net operating loss deduction
(NOLD), up by $5.3 billion from 1996.
1.56(g)-1(a)(6)(i) as "the alternative minimum taxable income of the taxpayer/or the taxable year, determined under section 55(b)(2), but without the adjustment for adjusted current earnings and without the alternative tax net operating loss deduction
under section 56(a)(4)."