I'm considering opening a corporation within the State of Florida.
Although, I'm trying to understand the Corporate Short Form Income Tax Return.
Line 1 (total income) Line 2 (federal NOLD) Line 3 (Florida NOLD) Line 4 (less exemption $50 000)
NOLD, from my research, is the NET Operating Loss Deductions.
In basic forms: Assume this: - operating income = $100, operating expenses = $10
Operating Income - Operating Expenses $100 - $10 = $90
Line 1 is simple - this is the total gross sales within a given period (sales quarter).
Line 2 - seems to be the NET OPERATING LOSS deductions (federal) or federal expenses
or is this incorrect?
Could this be operating expenses outside the state of Florida? Also assume nothing is carried forward from previous quarters/years.
Line 3 - expenses incurred within the state of Florida
Please excuse any confusion in this question, for this is my first post.