<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 10-43-10.5 - Carryforward of net operating losses deductible. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2038567Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2038567SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2038567CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2038567Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2038567DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2038567Normal-000001 { margin-top: 0; margin-bottom: 0; text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2038567000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2038567SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2038567SCL-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2038567Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=10-43-10.5"><span class="s2038567SENU">10-43-10.5</span></a><span xml:space="preserve" class="s2038567SENU">. </span><span class="s2038567CL">Carryforward of net operating losses deductible.</span></p><p dir="ltr" class="s2038567Normal-000000"><span xml:space="preserve" class="s2038567DefaultParagraphFont">A deduction may be made for a carryforward of a net operating loss. The deduction is limited to the seven tax years immediately following the tax year of the loss. Net income may not be less than zero prior to making the adjustments provided for in §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=10-43-10.2"><span class="s2038567DefaultParagraphFont">10-43-10.2</span></a><span xml:space="preserve" class="s2038567DefaultParagraphFont"> and </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=10-43-10.3"><span class="s2038567DefaultParagraphFont">10-43-10.3</span></a><span xml:space="preserve" class="s2038567DefaultParagraphFont"> because of a deduction taken for losses not incurred during the tax year for which the return is being filed.</span></p><p dir="ltr" class="s2038567Normal-000001"><span class="s2038567DefaultParagraphFont">The provisions of this section only apply to net operating losses incurred on or after January 1, 2015.</span></p><p dir="ltr" class="s2038567Normal"><span xml:space="preserve" class="s2038567000002"> </span></p><p dir="ltr" class="s2038567Normal"><span class="s2038567SCL">Source:</span><span xml:space="preserve" class="s2038567SCL-000003"> SL 2014, ch 60, § 4, eff. Jan. 1, 2015; SL 2016, ch 62, § 8.</span></p></div></body></html>