From everything I understand, Florida has an exemption on F-1120 of $50,000. This is a terrific tax break. Furthermore, if you are out-of-state, the $50,000 exemption applies even after you reduce income for allocations. Not sure about this but this is what I understand from the instructions.
My question involves a Florida NOL. Is a deduction for a Florida NOL allowed in addition to the $50,000 exemption? This sounds almost too good to be true. An example to illustrate:
Shmucko, Inc. is a GA corporation with $200,000 in taxable income, 30% of which is allocable to Florida. In the previous year, Schmucko had a NOL of ($30,000), 20% allocable to Florida. From the previous year, Shmucko thus has a ($6000) NOL for Florida purposes.
Question: How is the ($6000) NOL applied to current year Florida taxable income??
From the facts given, the unadjusted Florida income is $60,000, with a $50,000 exemption.
1. Florida taxable income is the difference of $10,000, but allows the NOL AFTER the exemption, so $4,000 is taxable.
2. The NOL is less than the exemption, so the $6K NOL is lost.
3. Same as 2. except since NOL yields no benefit, the NOL can be rolled forward to the next year.
4. None of the above.
Please help...FL instructions are not clear.
My question involves a Florida NOL. Is a deduction for a Florida NOL allowed in addition to the $50,000 exemption? This sounds almost too good to be true. An example to illustrate:
Shmucko, Inc. is a GA corporation with $200,000 in taxable income, 30% of which is allocable to Florida. In the previous year, Schmucko had a NOL of ($30,000), 20% allocable to Florida. From the previous year, Shmucko thus has a ($6000) NOL for Florida purposes.
Question: How is the ($6000) NOL applied to current year Florida taxable income??
From the facts given, the unadjusted Florida income is $60,000, with a $50,000 exemption.
1. Florida taxable income is the difference of $10,000, but allows the NOL AFTER the exemption, so $4,000 is taxable.
2. The NOL is less than the exemption, so the $6K NOL is lost.
3. Same as 2. except since NOL yields no benefit, the NOL can be rolled forward to the next year.
4. None of the above.
Please help...FL instructions are not clear.
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