Indiana – Foreign source dividends are included in NOL calculation

Even though Indiana provides separate statutory provisions for calculating its net operating loss deduction and its foreign dividend deduction, the Indiana Tax Court held that a taxpayer may include its foreign dividend deduction when determining its Indiana net operating loss. Taxpayers should consider filing amended returns to claim refunds to the extent that deducting foreign source dividend income would have increased the amount of an NOL, or created an NOL, in a particular year. [Caterpillar v. Indiana Department of State Revenue, Ind. Tax Court, No. 49T10-0812-A-70 (Mar. 28, 2013)]

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