2012 Status of the California Net Operating Loss Deduction

by | Jul 8, 2015 | State

For the tax years 2008 through 2011 California had suspended the Net Operating Loss (NOL) deduction for corporate and individual taxpayers with income above a specified threshold ($500K in 2008/2009; $300K in 2010/2011). Because of the economic hardship that many suffered beginning with the collapse of the real estate market in 2007, the NOL suspension meant that some California taxpayers had losses that they could not use.

CA NOL – Current Status

For 2012, the suspension of the NOL was not extended. The 2012 instructions for FTB Form 3805V (CA Net Operating Loss Computation) provide that the NOL carryover deduction has now been reinstated for tax years beginning on or after January 1, 2012.