Title 15 . Revenue

Chapter 21 . (Repealed)

Section 70. Treatment of net losses realized under this chapter

15 AAC 21.070. Treatment of net losses realized under this chapter

(a) A taxpayer realizes a net loss under this chapter if the taxpayer's net taxable income under 15 AAC 21.050 for that year is less than zero.

(b) A taxpayer's net loss may be carried back not more than three tax years before the tax year for which it is realized (but in no event before the 1978 tax year) and may be carried forward, if necessary, as far as the 15th tax year following the tax year for which it is realized. This carrying back and carrying forward must be on a first-in, first-out basis; that is, the tax loss must first be carried back as an offset against the taxpayer's net taxable income, if any, for the third preceding tax year, and any remaining tax loss must next be applied as an offset against the taxpayer's net taxable income, if any, for the second preceding tax year, and so on until either the tax loss is fully used as offsets against the taxpayer's net taxable income under AS 43.21 and, after December 31, 1981, AS 43.20 or until it has been carried forward into the 15th year following the tax year in which the net loss is realized. Any net loss from a tax year still remaining after the 15th following tax year will be lost.

(c) If a taxpayer has net losses from more than one tax year that may be applied as offsets against the taxpayer's net taxable income for the same tax year, the net loss from the earliest of those tax years must first be applied, then the net loss from the second earliest of those tax years must be applied, assuming that the earliest tax loss does not fully offset the net taxable income against which it is applied, and so on.

History: Eff. 2/22/79, Register 69; am 3/26/82, Register 81

Authority: AS 43.05.080

AS 43.19.010 ,

Art. IV, § 18

AS 43.21.020

AS 43.21.090