Tennessee C Corp has operations in LA, and apportions appx 6-8% of its operation to LA.
There is a rollforward of a Loss.
Line 1C (Form CIFT620) allows the deduction of such a loss to apply against income in current year.
The loss is only a tiny fraction of the Federal Loss. However, Line 1C also requires that the
loss be reduced by the "federal tax refund applicable to loss."
There were federal tax refunds, but they are not factored down to the 6-8% level. If the entirety
of these refunds are subtracted from the LA allocated losses, the result will be a substantial
addition to income.
This doesn't make sense. What am I missing??
There is a rollforward of a Loss.
Line 1C (Form CIFT620) allows the deduction of such a loss to apply against income in current year.
The loss is only a tiny fraction of the Federal Loss. However, Line 1C also requires that the
loss be reduced by the "federal tax refund applicable to loss."
There were federal tax refunds, but they are not factored down to the 6-8% level. If the entirety
of these refunds are subtracted from the LA allocated losses, the result will be a substantial
addition to income.
This doesn't make sense. What am I missing??