{"data":{"id":"us-in/ic-6-3-1-40","jurisdiction":"us-in","citation":"IC 6-3-1-40","heading":"\"Separately stated net operating loss\"","body":"Sec. 40. (a) The term \"separately stated net operating loss\" means a federal net operating loss, or a portion of a federal net operating loss, determined according to the Internal Revenue Code that is:\n(1) computed as an allowable federal net operating loss with regard to a taxable year; and\n(2) required to be carried forward or carried back under the Internal Revenue Code;\nregardless of whether the taxpayer had federal taxable income for the year of the loss.\n(b) A separately stated net operating loss for a taxable year includes:\n(1) an excess business loss for the taxable year under Section 461(l) of the Internal Revenue Code;\n(2) a federal net operating loss for a trade or business that is not allowable in the taxable year in which the loss was incurred as a result of the application of Section 512(a)(6)(C) of the Internal Revenue Code, with the federal net operating loss determined separately for each trade or business; and\n(3) a federal net operating loss that is not affected by excess inclusion income under Section 860E of the Internal Revenue Code.\n(c) For purposes of IC 6-3-2-2.5 and IC 6-3-2-2.6, a separately stated net operating loss must be expressed as a negative number.","path":["TITLE 6. TAXATION","ARTICLE 3. STATE INCOME TAXES","Chapter 1. Definitions"],"source_url":"https://iga.in.gov/ic/2026/Title_6.html#6-3-1-40","current_through":"2026","vintage":"2026","retrieved_at":"2026-09-09T01:51:39Z","sha256":"5c0872403e132fc30d2b94bed2fba323ed665eb3bbb877e18e7ee7993f58d77a","source_id":"us-in","stale":false,"prev":"us-in/ic-6-3-1-39","next":"us-in/ic-6-3-1-41"},"notice":"GroundRules: Original legal text. Not legal advice."}