(a) The portion of a net operating loss sustained in any taxable year subsequent to December 31, 1975, allocable to the City, may not be applied against the portion of the profit of succeeding years allocable to the City. No portion of a net operating loss shall be carried back against net profits of any prior year.
(b) The portion of a net operating loss sustained shall be allocated to the City in the same manner as provided herein for allocating net profits to the City.
(c) If an individual is engaged in two or more taxable business activities to be included on the same return, the net loss of one unincorporated business activity may be used to offset the profits of another (except any portion of a loss or profit separately reportable for municipal tax purposes to another taxing entity) for purposes of arriving at overall net operating profit or net operating loss.
(d) Losses from other sources, including net operating losses and passive activity losses reported for federal income tax purposes, may not be combined with qualifying wages.
(e) The only expenses that can be deducted against qualifying wages are those employee business expenses deductible for federal income tax purposes in determining adjusted gross income, unless otherwise allowed on a uniform and consistent basis by the Tax Administrator. The total of such expenses cannot exceed the employee’s related W-2 wage income from the same employer. If a taxpayer’s taxable income for a taxable year includes income against which the taxpayer has taken a deduction for federal income tax purposes and reported on Form 2106 as attached to the taxpayer’s federal income tax return filed for the taxable year, the taxpayer shall determine taxable income to the City by deducting the same amount deducted for federal income tax purposes and reported on the taxpayer’s Form 2106 for that taxable year. This deduction shall be allowed for City income tax purposes only if the taxpayer attaches to the taxpayer’s city income tax return a copy of Form 2106 and Schedule A as filed with the taxpayer’s federal income tax return for that taxable year.
(Ord. 94-75. Passed 1-5-76; Ord. 9-04. Passed 7-19-04; Ord. 12-10. Passed 7-19-10.)