Minnesota Unrelated Business Income Tax (UBIT) Return

Unrelated Business Income Tax (UBIT) Return
2023 M4NPNOL, Net Operating Loss Deduction
*236651*

2023 M4NP NOL, Net Operating Loss Deduction	
For tax-exempt organizations and cooperatives that file federal Form 990-T or 1120-C.
Name of Organization	

Year

FEIN	

Minnesota Taxable Net Income/Loss

Minnesota Losses Used

2023 Summary:

Net	Operating	Loss	Deduction	

Minnesota Tax ID

Minnesota Losses Carried Back

Losses Remaining

Oldest Loss Year
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	

Enter on Form M4NP, line 7

9995

Total	Losses	Remaining	(to	be	carried	forward)

2023 Schedule M4NP NOL Instructions
Use this form to show the sources and applications of your net operating losses. List the years you used to calculate the net operating loss and the
years you used the losses.
Tax law changes signed into law on May 24, 2023 effect the net operating loss deduction. The amount of net operating loss deduction must
not exceed 70% of taxable net income in a single taxable year. Net operating losses may be carried forward only. The carry forward period is
15 years.
Starting with tax years beginning after December 31, 2017, the two-year carry back has been eliminated.
You may deduct a net operating loss incurred in a prior year and not previously used to offset net income on Form M4NP, Unrelated Business Income
Tax Return, line 7.
If you conduct your business entirely in Minnesota, you may deduct the full amount of any previously unused net operating loss after the 80%
limitation is applied.
If you apportion your income to Minnesota, you may deduct any previously unused net operating loss at the apportionment percentage of the loss
year.
You may not create or increase the net operating loss by the:
•	 Deduction for dividends received
•	 Foreign royalties subtraction for tax years beginning before 2013
Acquired net operating losses are subject to limitation as determined under Internal Revenue Code section 382(g).
To complete the worksheet:
•	 Enter your Minnesota taxable net income or loss (Form M4NP, line 6) for the year in the Minnesota Taxable Net Income/Loss column.
•	 If the amount is a loss, add it to the total in the previous year’s Losses Remaining column and enter the sum in the Losses Remaining column. The
amount of loss being used in each year is limited to 70% (0.70) of the taxable net income for the year.
If the amount is income, and you use the losses from previous years to reduce that income, enter the amount of loss used to reduce the income
in the Minnesota Losses Used column.
Complete Schedule M4NP NOL and attach a copy with your Minnesota tax return.
You must complete a separate Schedule M4NP NOL for each corporation in a unitary group claiming a net operating loss deduction.
Note: Organizations that file federal Form 1120-H or 1120-POL are not allowed a net operating loss deduction.

Example:
	

Year	

Oldest Loss Year

	

	12/31/15	
2

	12/31/16	
	

12/31/17	

4

	12/31/18	
5

	

12/31/19	

6

	12/31/20	
7

	12/31/21	
8

	12/31/22	
9

Minnesota Losses Used	

12/31/14	(7,000)	

Subsequent Year 1

3

Taxable Net Income/Loss	

	12/31/23	

Minnesota Losses Carried Back	

Losses Remaining

--------		

(7,000)

(4,000)		

(3,000)

(5,000)			

(8,000)

4,000	

16 ,000	
(5,000)	
14 ,000	

(8,000)	

	

--------		
(5,000)	

0
(5,000)

	

(5,000)			

0
(5,000)

7,500	

(5,000)		

(1,000)	

--------		

(1,000)

(700)		

(300)

1,000	

0

10
11
12
13
14
15

2023 Summary:

Net Operating Loss Deduction 	 Total Losses Remaining (to be carried forward)

700	 	
Enter on Form M4NP, line 7

(300)