How does Georgia treat a Net Operating Loss (NOL)?
• Losses can be carried back two years (with special rules for farmers and casualty losses) and forward 20 years. An election made with the IRS to relinquish the entire carry back period and carry a loss forward is a binding election with Georgia. If the company has a separate company Georgia NOL and the Federal consolidated return has positive income the separate Georgia company has to carry the loss back unless they attach a written statement electing to forgo the carry back period. Alternatively they could also check Box 14, Schedule K of their pro forma Federal return they file with the Georgia return to forego the carry back period.
