141.011 Casualty losses -- Net operating losses

141.011 Casualty losses -- Net operating losses.

(1) Notwithstanding any other provision of this chapter, the net operating loss

carryback-carryforward deduction, including casualty loss, allowed under Section

172 of the Internal Revenue Code shall apply only to such losses incurred in taxable

years beginning after December 31, 1979, and no such loss shall be carried back to

taxable years beginning before January 1, 1980. Any casualty loss carryforward

authorized by this section as it existed before January 1, 1980, may be carried

forward as an itemized deduction until it has been fully deducted.

(2) The net operating loss carryback deduction shall not be allowed for losses incurred

for taxable years beginning on or after January 1, 2005.

(3) For taxable years when the tax due under KRS 141.040 is based on the alternative

minimum calculation provided in KRS 141.040, any net operating loss carryforward

deduction that is utilized for the taxable year shall be the amount of taxable net

income before the net operating loss deduction, that exceeds the taxable net income

equivalent. For purposes of this subsection, "taxable net income equivalent" means

the amount of taxable net income that would generate an income tax equal to the

alternative minimum calculation liability computed under KRS 141.040.

(4) For taxable years beginning on or after January 1, 2005, and before December 31,

2006, the net operating loss carryforward deduction of a corporation shall be

reduced by the amount of distributive share income, loss, and deduction distributed

to an individual or general partnership as defined in KRS 141.206.

(5) For taxable years beginning on or after January 1, 2005, but prior to January 1,

2019, the portion of a net operating loss that is not used to offset the income of an

affiliate according to the limits in KRS 141.200(11) shall be available for

carryforward, subject to the limitations contained in this section.