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View All Financial Institution Excise Tax, Net Operating Losses (NOLs) FAQs

How should financial institutions treat NOLs?

Effective for tax periods beginning on or after January 1, 2020, a net operating loss is applied to the first taxable year to which it may be carried and deducted only during the 15 consecutive tax years immediately following the tax year in which it arose.

Effective, for tax periods prior to January 1, 2020, all financial institution losses will carry back their net operating losses to apply as a deduction against prior income, and to deduct from succeeding years’ income the excess loss. No net operating loss deduction (arising out of a net loss in an earlier or later year) shall be allowed in computing a net operating loss. Casualty losses and losses arising from theft, fraud and embezzlement, however, shall be deductible in computing the net operating loss. A net operating loss for a taxable year may be carried back two years, then forward to the eight succeeding taxable years in chronological order. A successor financial institution shall be allowed to carry over and deduct from succeeding years’ income, the net operating loss of its predecessor.

Effective for tax periods beginning on or after January 1, 2020, a net operating loss is applied to the first taxable year to which it may be carried and deducted only during the 15 consecutive tax years immediately following the tax year in which it arose.

Effective, for tax periods prior to January 1, 2020, all financial institution losses will carry back their net operating losses to apply as a deduction against prior income, and to deduct from succeeding years’ income the excess loss. No net operating loss deduction (arising out of a net loss in an earlier or later year) shall be allowed in computing a net operating loss. Casualty losses and losses arising from theft, fraud and embezzlement, however, shall be deductible in computing the net operating loss. A net operating loss for a taxable year may be carried back two years, then forward to the eight succeeding taxable years in chronological order. A successor financial institution shall be allowed to carry over and deduct from succeeding years’ income, the net operating loss of its predecessor.

Related FAQs in Financial Institution Excise Tax, Net Operating Losses (NOLs)

In Alabama, a resale certificate is officially called a “Sales Tax License”. To get a copy of your Alabama resale certificate or Sales Tax License, you should:

Login to MAT, locate the appropriate tax account, locate and click “Print tax account license” link. If you need help or cannot access your certificate online contact the Alabama Department of Revenue Sales and Use Tax Division for assistance.

Step by Step Instructions for License Renewal

Yes. In accordance with Rule 810-6-1-.144.03: All buyers of property for resale purposes are entitled to purchase at wholesale, tax-free, the property they resell as regular course of business when they have secured the sales tax license required by law. This rule also applies to retailers located outside Alabama when they have secured the sales tax license required by law in the state in which they are located.

A credit card transaction fee is a charge added to the regular price of an item by a retailer when the purchaser pays for the item using a credit card. Other names for this fee include swipe fee, credit card surcharge, processing fee, service charge, or convenience fee.

These fees are subject to sales and use tax and should be included in the seller’s gross sales on retail transactions when calculating tax due. Example: A sale of tangible personal property totals $100. The customer pays with a credit card and is charged a $3 credit card transaction fee. The total price of $103, including the credit card transaction fee, is subject to sales and use taxes.

A credit card fee, even if separately stated, is part of the retailer’s cost of doing business, and the entire consideration for the sale of tangible personal property is subject to sales and use taxes.

If a transaction consists of only non-taxable goods or services, the credit card transaction fee is not subject to sales and use taxes. Example: A customer is charged $50 for a haircut. The customer pays with a credit card and is charged a $3 credit card transaction fee. Since the haircut is not subject to sales and use taxes, the corresponding credit card transaction fee is not subject to sales and use taxes.

When trying to complete title applications for vessels that have inches listed on the MSO, please use this Vessel Length Chart for conversion purposes.

Vessel Length Chart

Yes, Alabama allows resident individuals to claim a tax credit for income taxes imposed by other states. This credit is claimed on Form 40, Schedule CR. A copy of the other state’s return and a copy of the state Schedule K-1 should be included as documentation of this credit.

If the individual does not file an individual income tax return in the other state or the state provides an exclusion of income, include a proforma return calculating the tax at the other state’s rate and a copy of the state Schedule K-1 as documentation of this credit.

Note: Any Pass-Through Entity tax deducted on the Pass-Through Entity’s federal return, which reduces the taxable income reported on the owner’s K-1, should be added back to compute Alabama taxable income.

No, if the current title is an Alabama ELT there is no cost to print a physical title.

However, once an ELT is printed on physical title paper it can not be printed again. A replacement title application must be applied for if a replacement is needed.