Minnesota Net Operating Loss Deduction

Net Operating Loss Deduction
2023 NOL, Net Operating Loss Deduction
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2023 NOL, Net Operating Loss Deduction	
Combined Income Return Filers: Complete a separate Schedule NOL for each corporation that is carrying forward a net operating
loss (NOL).
Name of Corporation	

Year	

FEIN	

Taxable Net Income/Loss	

Minnesota Tax ID Number

Minnesota Losses Used	

Losses Remaining

Net Operating Loss Deduction	

Total Losses Remaining (to be carried forward)

Oldest Loss Year
Subsequent Year 1
	2
	3
	4
	5
	6
	7
	8
	9
10
11
12
13
14
15

2023 Summary:

Enter on Form M4T, line 6

9995

2023 Schedule NOL Instructions
The purpose of this form is to show the sources and applications of net operating losses. Only the years used to calculate the net operating
loss, and the years the losses are used, need to be listed.
Your net operating loss deduction is limited to 70% (.70) of your taxable net income for the year.
Net operating losses may be carried forward only. The carryforward period is 15 years.
A net operating loss incurred in a prior year and not previously used to offset net income may be deducted on Form M4T, line 6.
Corporations whose business is conducted entirely in Minnesota may deduct the full amount of any previously unused net operating loss after
the 70% limit is applied.
Corporations that apportion their income to Minnesota may deduct any previously unused net operating loss at the apportionment percentage
of the loss year.
Corporations may not create or increase the net operating loss by:
• The deduction for dividends received, Form M4T, line 8
• The foreign royalties subtraction for tax years beginning before 2013
Minnesota net operating loss limitations on use:
• For tax years beginning before January 1, 2018, the Minnesota Losses Used is limited to 100% of the Taxable Net Income amount.
• For tax years beginning after December 31, 2017, and before January 1, 2023, the Minnesota Losses Used is limited to 80% of the Taxable
Net Income amount.
• For tax years beginning after December 31, 2022, the Minnesota Losses Used is limited to 70% of the Taxable Net Income amount.
Acquired net operating losses are subject to limitation as determined under Internal Revenue Code section 382(g).

To complete the worksheet:

• Enter your taxable net income or loss for the year in the Taxable Net Income/Loss column. If your return was amended or adjusted, use the
most recent amounts for that year.
• 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.
• If the amount is income, and losses from previous years are being used to reduce that income, enter the amount of loss being used to reduce
the income in the Minnesota Losses Used column. The amount of loss being used in each year is limited to 70% (.70) of the taxable net
income for the year.
Complete Schedule NOL and attach a copy with your Minnesota tax return.
A separate Schedule NOL is required for each corporation in a unitary group that is claiming a net operating loss deduction.

Example:
Year	
Oldest Loss Year

12/31/14

Subsequent Year 1

	12/31/15	
	2

	12/31/16	
	3

12/31/17	

	4

	12/31/18	
	5

12/31/19	

	6

	12/31/20	
	7

	12/31/21	
	8

	12/31/22	
	9

	12/31/23	

Taxable Net Income/Loss	
(13,000)
4,000	

Minnesota Losses Used	
-------(4,000)	

(5,000)		

(13,000)
(9,000)
(14,000)

6 ,000	

(6,000)	

(8,000)	

--------	

10 ,000	

Losses Remaining

(8,000)
(16,000)

(8,000)	

(8,000)

5,000	

(4,000)	

(4,000)

2,000	

(1,600)	

(2,400)

(3,000)	

--------	

(5,400)

4,000	

(2,800)	
Net Operating Loss Deduction 	

(2,800)	

2023 Summary: Enter on Form M4T, line 6

(2,600)
Total Losses Remaining (to be carried forward)

(2,600)