Does VA allow a nonresident to carryback a net operating loss back to a year they were a resident? In other words can an NC resident with an NC source NOL carry it back to a prior year when they were a VA resident?
How long is a 2007 net operating loss carried back for VA purposes?
TIA
-- Drew Edmundson, CPA Cary, NC
Drew, Virginia has no separate provision for carrying an NOL back or forward, but starts the computation of taxable income with federal AGI AFTER the NOL deduction. So whatever NOLD was claimed on the federal return is allowed for Virginia. If the taxpayer has a federal NOL carryback to a year when he was a VA resident, I believe he can amend his VA resident return to claim the carryback loss, even though it arises from a non-VA source.
However, if there is no NOL carryback for federal purposes, there is no VA carryback.
See Virginia Public Document Ruling No. 89-110, 03/24/1989.
Katie in San Diego
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