Pre-1987 Net Operating Loss Deduction

Under current law, the pre-1987 net operating loss deduction for individuals, estates, and trusts allows individuals, estates, and trusts to deduct Colorado net operating losses carried forward from tax years beginning prior to January 1, 1987, from their federal taxable income when computing their Colorado taxable income. But the latest year that an individual, estate, or trust could have used the pre-1987 net operating loss deduction and carried forward a net operating loss generated in 1987 was 2002. The act repeals the deduction.

The act applies to income tax years tax beginning on or after January 1, 2021.

(Note: This summary applies to this bill as enacted.)