Wisdom

Still haven’t filed your 2008 Colorado corporation income tax return? If you apportion your income to a number of states, maximize your 2008 Colorado NOL carryover by calculating the year’s loss under both the two factor and three factor method; choose the method that provides the greatest loss. Colorado has adopted the single factor method of apportionment for multi-state companies for years beginning after January 1, 2009. There is no limitation on the NOL carryover based on the method chosen in a prior year. This means a company can maximize their NOL for 2008 even if it is a different method than utilized in a prior year.