Can line 1 on the Missouri return be zero?
Yes, line 1 of the Missouri return can be zero only when federal taxable income is zero. When a corporation has a net operating loss (negative line 30 on the Federal Form 1120), line 1 on the Missouri return must equal the same negative amount. A corporation may show the negative amount on line 1 and use it to offset positive modifications, if it chooses. If a negative amount is entered on line 1 and it is used to offset positive additions in the initial year of the loss, Form MO-5090 must be completed when the corporation uses the net operating loss as a carry back or carryfoward on the Federal return.
