If a taxpayer has incurred a net operating loss, when is a net operating loss modification computed?
A net operating loss modification is computed when a net operating loss deduction is claimed. If there was a net operating loss for the tax year 2008 and the taxpayer carried it back two years and claimed a net operating loss deduction on an amended federal return for tax year 2006, then a net operating loss modification would be computed for the 2006 amended Missouri return. Note: Modifications should only be completed if positive additions were offset in the year of the loss.
