Missouri Net Operating Loss Addition Modification Worksheet

Net Operating Loss Addition Modification Worksheet
MO-5090 New Operating Loss Addition Modofication Sheet
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MO-5090

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Department Use Only
(MM/DD/YY)

Net Operating Loss Addition Modification Sheet

Taxable Year

Beginning

Ending

(MM/DD/YY)

(MM/DD/YY)

Missouri Tax I.D.

Federal Employer

Number

I.D. Number

Charter
Number

Enclosure Sequence No. 1120-07
Corporation Name	

Year of Loss

Year of Modification

Complete this worksheet to compute the net operating loss (NOL) addition modification, pursuant to Section 143.431.4, RSMo. See instructions. Use this form if the corporation
reported a net operating loss deduction on Federal Form 1120, Line 29a or on Federal Form 1139 or Federal Form 1120X for carryback years and in the year of the initial loss,
used the loss to offset Missouri net positive additions. If both do not apply, there is no net operating loss modification to compute. If both apply, then complete the net operating
loss modification worksheet. If the NOL deduction is the sum of multiple years, you must complete a Form MO-5090 for each loss year.

Column 1

Column 2

1.		 Net operating loss deduction used in the current year.		
		 (Enter as a positive amount.)

00

	2a.	 State tax addback

00

	2b.	 State and local bond interest (except Missouri)

00

	2c.	 Fiduciary and partnership adjustment

00

	2d.	 Missouri depreciation basis adjustment

00

2e.		 Donations claimed for the Food Pantry Tax Credit

00

2f.		 Business Interest Expense Carryforward

00

Modificatons

3.		 All required additions to federal taxable income, except for the
		 net operating loss modification: add Lines 2a, 2b, 2c, 2d, 2e and 2f

Column 3

Column 4
00

00

	4a.	 Interest on U.S. Government obligations

00

	4b.	 Federally taxable — Missouri exempt obligations

00

	4c.	 Reduction in gain due to basis difference and Agriculture Disaster Relief

00

	4d.	 Previously taxed income

00

	4e.	 Amount of any state income tax refund included in federal
		 taxable income

00

4f.		 Capital gain exclusion from the sale of low income housing
		project

00

	4g.	 Fiduciary and partnership adjustment

00

	4h.	 Missouri depreciation basis adjustment

00

4i.		 Net operating loss carryback previously disallowed for Missouri

00

4j.		 Depreciation recovery on qualified property that is sold

00

4k.		 Build America and Recovery Zone Bond Interest

00

4l.		 Missouri Public-Private Partnerships Transportation Act

00

4m.	 Disallowed Business Interest Expense

00

5.		 All required subtractions from federal taxable income: 		
		 add Lines 4a through 4m

00

6.		 Net addition modification (but not less than zero):
		 Line 3 minus Line 5

00

7.		 Total net operating loss from the Loss Year
		 ___________ (Enter as a positive amount)

00

8.		 Net operating loss deductions utilized in all prior years 		
		 (Enter as a positive amount)

00

9.		 Cumulative sum: Line 1 plus Line 8

00

10.		 Sum: Line 6 plus Line 9

00

11.		 Amount: Line 10 minus Line 7 (but not less than zero)

00

12.		 Net operating loss modification: lesser of Line 1 or Line 11.
		 Enter the amount here and on Form MO-1120, Part 1, Line 3.

00

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Net Operating Loss Addition Modification Sheet Instructions
Use this form for corporations that 1) reported a net operating loss (NOL) deduction for carryback years on the Federal Form 1120 -Line 29A, Federal Form
1139, or Federal Form 1120X and 2) used the loss to offset Missouri net positive additions in the year of the initial loss. If both do not apply, there is no net
operating loss modification. If both apply, then complete the net operating loss addition modification worksheet. If the NOL deduction is the sum of multiple
years, you must complete a Form MO-5090 for each loss year.
	 1.	Enter on Line 1, Columns 1 and 4, the amount of the net operating loss deduction attributable to the loss year from Federal Form 1120, Line
29a of the carryover year or from Federal Form 1139 or Federal Form 1120X for carryback years. This is the amount of the deduction utilized
in the current year.
	

2.	Enter on Lines 2a through 2f all required additions from the loss year to federal taxable income, except for the net operating loss modification.
See Section 143.121.2(3), RSMo regarding the Missouri depreciation basis adjustment for Line 2d.

	

3.	Add Lines 2a through 2f and enter the total on Line 3 to compute all required additions from the loss year to federal taxable income.

	 4.	 Enter on Lines 4a through 4m all required subtractions from federal taxable income from the loss year. See Section 143.121.3(2), RSMo and
		12 CSR 10-2.020 regarding the reduction in gain due to basis difference for Line 4c. See Section 143.121.3(10), RSMo regarding the Agriculture
		 Disaster Relief for Line 4c. See Section 143.121.3(7), RSMo regarding the Missouri depreciation basis for Line 4h. See Section 143.121.2(4),
		RSMo regarding the net operating loss carryback previously disallowed for Missouri on Line 4i. See Section 143.121.3(9), RSMo regarding
		 the depreciation recovery on qualified property that is sold for Line 4j. See Section 108.1020, RSMo regarding the Build America and Recovery
		 Zone Bond Interest for Line 4k. See Section 227.646, RSMo regarding the Missouri Public-Private Partnerships Transportation Act for Line 4l.
	

5.	Add Lines 4a through 4m and enter the total on Line 5 to compute all required subtractions from the loss year from federal taxable income.

	

6.	Subtract Line 5 from Line 3 and enter on Line 6 (but not less than zero). This will give you the net addition modification, as the amount that all
required additions exceeds all required subtractions.

	

7.	Enter the total amount of the net operating loss from Federal Form 1120, Line 30 of the loss year in Column 3 and enter the tax year of the net
operating loss in the blank provided.

	8.	
Enter the amount of the net operating loss deduction utilized in prior years from Federal Form 1120, Line 29a from all prior carryover years of this
loss year or from Federal Form 1139 or Federal Form 1120X from the carryback years.
	

9.	

Add Lines 1 and 8 and enter on Line 9

	 10.	

Add Lines 6 and 9 and enter on Line 10.

	 11.	

Subtract Line 7 from Line 10 (but not less than zero) and enter on Line 11.

	 12.	

Enter the lesser of Line 1 or 11 on Line 12 and also on Form MO-1120, Page 3, Part 1, Line 3.

Note: Y
 ou must specifically identify each loss year that is part of the net operating loss deduction and a separate Form MO-5090 must be completed
for each loss year.
Note: T
 he above items are each considered to be a positive amount for purposes of this calculation. If the result of combining amounts is negative, use
zero.

Frequently Asked Questions
	

1.	

If a taxpayer has incurred a net operating loss, when is a net operating loss addition modification computed?

		A net operating loss addition modification is computed when a net operating loss deduction is claimed. If there was a net operating loss for the
tax year 2017 and the taxpayer carried it back two years and claimed a net operating loss deduction on an amended federal return for tax year
2015, then a net operating loss addition modification would be computed for the 2015 amended Missouri return.
	

2.	

		

Is the Net Operating Loss Addition Modification computed for the year of the loss?
No, it is computed for the year a net operating loss deduction is used.

	 3.	If a taxpayer has claimed a net operating loss deduction on its federal return and in the year the initial loss was incurred, its Missouri addition
modifications are less than its subtraction modifications, does it have to compute a net operating loss modification?
		No, there is no net operating loss addition modification attributable to the net operating loss because in the year of the initial loss, the Missouri
addition modifications were less than the Missouri subtraction modifications.
	 4.	If the net operating loss deduction is composed of net operating loss amounts from more than one year, is there more than one net operating
loss addition modification?
		Yes, a net operating loss addition modification must be computed for each net operating loss included in the net operating loss deduction.
	

5.	

If more than one net operating loss addition modification is computed, in what order are the amounts computed?

		The net operating loss addition modifications are computed in the same order the net operating losses are used as net operating loss deductions
for federal income tax purposes.

Mail to:

Taxation Division
PO Box 3365
Jefferson City, MO 65105-3365	

	
	
	
Phone: 	 (573) 751-4541
Fax:
	 (573) 522-1721
E-mail: 	 [email protected]

Form MO-5090 (Revised 12-2023)

Visit dor.mo.gov/taxation/business/tax-types/corporation-income/
for additional information.

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