Section 84. Net operating loss carrybacks and carryovers

A. Generally. For Virginia purposes a net operating loss deduction is allowed only to the extent that it is allowed in computing federal adjusted gross income. Therefore, it must be carried back or carried forward to the same year as for federal income tax purposes.

B. Exception. There shall be no carryback of any net operating loss to any taxable years beginning prior to January 1, 1972. In the case of a net operating loss that for federal income tax purposes that is carried back to any taxable year prior to January 1, 1972, the amount of such loss is to be carried forward for Virginia purposes and used to offset taxable income in successive tax years subsequent to 1972 until the amount of federal loss is offset.

Historical Notes

Derived from VR630-2-311.1 § 5, eff. taxable years beginning on and after January 1, 1985.

Statutory Authority

§§ 58.1-203 and 58.1-311 of the Code of Virginia.