Montana Net Operating Loss Worksheet

Net Operating Loss Worksheet
Form NOL-Pre-99
2023 Montana Net Operating Loss (NOL)
for Individuals, Estates, and Trusts

Form NOL
V1 6/2023

15-30-2119, MCA, and ARM 42.15.318, ARM 42.30.106

Before You Start
NONRESIDENTS: In 2021, a Montana District Court
found that a nonresident could carryover a Montana
loss from prior years, despite not having incurred a
federal NOL. This decision is currently on appeal to
the Montana Supreme Court and the Department
will update NOL guidance for nonresidents as it may
change following this decision.

Form Changes

As a result of legislation (see Legislative
Changes below), the Montana NOL deduction
and carryover beginning in Tax Year 2024 has
been repealed. The following schedules have
been removed: the Class A NOL Tracking Table,
Class A/B Carryover Determination Schedule,
and the NOL Carryover Table.

Legislative Changes

Tax Year 2023 is the final year a Montana
NOL deduction may be claimed. As a result of
legislation passed in 2021 (Senate Bill 399), this
deduction is repealed as of Tax Year 2024.
Accordingly, taxpayers will not have to compute
their NOL carryover for Montana purposes.
Instead, beginning in Tax Year 2024, NOL
carryovers are included in the calculation of a
taxpayer’s Montana taxable income as a part of a
taxpayer’s federal taxable income.
Only taxpayers carrying back a loss from a
farming business or that have a Montana source
excess business loss will complete a NOL form.

In general, you have an NOL for Montana income
tax purposes if you have an NOL for federal
income tax purposes. Both NOLs are computed
similarly. See IRS Publication 536 for detailed
information about calculating the federal NOL.
The Montana NOL calculation takes into account
Montana additions and subtractions to Federal
Adjusted Gross Income and Montana itemized
deductions. Therefore, taxpayers must use any
nonbusiness Montana additions and nonbusiness
Montana subtractions to arrive at the Montana
taxable income to determine a Montana NOL.
If you are filing separately from your spouse on
the same form, complete a separate Form NOL
for the spouse(s) that incurred the NOL.

MT NOL Deductions

The federal Tax Cuts and Jobs Act of 2017
added limitations to NOL deductions stemming
from losses incurred after December 31, 2017,
creating two classes of NOL deductions, called
Class A NOL deductions and Class B NOL
deductions for the purpose of these instructions.
The CARES Act of 2020 does not change this
designation because any NOL incurred after
December 31, 2017, may still be carried over to
tax years beginning after December 31, 2020,
and the limitations suspended for tax years
beginning before January 1, 2021 will apply.
Tax Year 2023 is the last year that any
Montana Class A and Class B NOL deductions
may be claimed.

NOL Incurred in a Tax Year Before

Montana Net Operating Loss January 1, 2018 (“Class A NOL”)
(NOL) and Federal NOL
Montana Class A NOL deductions designate NOL
A Montana NOL arises when the sum of business
deductions reduces Montana taxable income
below zero. If your Montana taxable income is
different than your federal taxable income, your
Montana NOL may differ from your federal NOL.

amounts that arose from losses incurred in a tax
year beginning before January 1, 2018.

In general, Class A NOL amounts may be carried
back two years and forward 20 years, with longer
carryback periods for farming losses.

2023 Montana Net Operating Loss (NOL)

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NOL Incurred in a Tax Year After
Column I–NOL
December 31, 2017 (“Class B NOL”) Line 1a–Enter your Montana Adjusted Gross
Montana Class B NOL deductions designate NOL
amounts that arose from losses incurred in tax
years beginning after December 31, 2017, and
before December 31, 2023. Class B NOL amounts
cannot be carried back, unless they were incurred
in 2018, 2019, and 2020 under the CARES Act of
2020 or as a result of a farming business. Class
B NOLs can only be carried forward through
December 31, 2023, but are limited to 80 percent
of taxable income starting with tax years beginning
after December 31, 2020.
If you are a nonresident individual, estate, or trust,
you may have a Montana source loss on your
Form 2, Nonresident/Part-year Resident Ratio
Schedule, which can generally only be used if you
have a federal NOL.

Change in Filing Status and/or
Marital Status

If your marital or filing status has changed, you
must follow the federal rules and instructions for
change of filing status when computing Montana
NOL carrybacks, carryovers, and refund limits. If you
are married filing separately on the same form, you
must complete separate Class B NOL schedules,
including carryback and carryover schedules.

Montana Class B NOL Schedule

Use the Class B NOL Schedule to determine
if you have a Montana farming business loss
in 2023. This schedule helps you apply the
limitations on nonbusiness capital losses and
ordinary nonbusiness deductions that exceed
nonbusiness income and business capital losses
used to calculate an NOL.
There are two columns, Column I and Column II.
Resident individuals, estates, and trusts use
Column I only. Nonresident individuals, estates,
and trusts must complete both Columns I and II.
Report the corresponding Montana source
income, loss, and adjustments in Column II.

Income. Individuals enter the amount from Form 2,
line 14. Estates and trusts enter the amount from
Form FID-3, line 24 (Montana taxable income).
Line 1b – Enter your standard deduction
or itemized deductions. Individuals enter the
amount from Form 2, line 15. Estates and trusts
add the amounts from Form FID-3, lines 13
(charitable contributions), 21 (Montana income
distribution deduction), and 23 (exemption).
Lines 2 and 3–Calculate your nonbusiness
capital losses and gains. These are losses or gains
reported on the federal Schedule D that are not
attributable to, or derived from, a trade or business.
Line 6–Nonbusiness deductions. Enter your
deductions and subtractions that are not related
to your trade or business or your employment
as a positive number. Examples of nonbusiness
deductions include:
●	 Health Savings Account deduction
●	 Deductions for payments on behalf of
a self-employed individual to an SEP,
SIMPLE or qualified plan
●	 Alimony paid
●	 IRA deduction
●	 Archer MSA deduction
●	 Montana subtractions that are considered
nonbusiness, e.g., exempt interest and
mutual funds from federal bonds and
obligations; or, state income tax refunds
included on Form 2
●	 Most itemized deductions (except for
casualty and theft losses)
●	 Montana standard deduction (if you do not
itemize your deductions)
Do not include the deduction for Montana
personal exemptions for you, your spouse, or
your dependents.
Do not enter an amount in Column II.

2023 Montana Net Operating Loss (NOL)

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Line 7–Nonbusiness Income. Only enter
income that is unrelated to your trade or business
or employment. Examples of nonbusiness
income include:
●	 Interest and dividend income
●	 Taxable federal and state income tax
refunds
●	 Alimony received
●	 Gains from the sale of a personal
residence to the extent it is recognized in
Federal Adjusted Gross Income
●	 Gains or losses from the sale of assets not
used in a trade or business
●	 Taxable IRA distributions, pensions, and
annuities
●	 Taxable Social Security benefits
●	 Income or losses from a trust or estate
●	 Montana additions to the Federal Adjusted
Gross Income that are considered
nonbusiness
Lines 11 and 12–Business capital losses and
gains. These are the capital gains and losses
attributable to or derived from a trade or business
before any capital loss limitation and without
regard to any Section 1202 exclusion from your
federal Schedule D.
Line 17–Adjustment for Section 1202
Exclusion. Enter any gain you excluded under
Section 1202 on the sale or exchange of qualified
small business stock from federal Schedule D,
Form 8949, Part II, Code Q.
Line 19 through line 22–Adjustments for
Capital Losses. Your amount deductible for
capital losses is limited based on whether
these losses are business capital losses or
nonbusiness capital losses.
Nonbusiness capital losses. You can deduct
your nonbusiness capital losses (line 2) only
up to the amount of your nonbusiness capital
gains without using any Section 1202 exclusion
(line 3). If your nonbusiness capital losses
are more than your nonbusiness capital gains
without using any Section 1202 exclusion, you
cannot deduct the excess.

Business capital losses. You can deduct your
business capital losses (line 11) only up to the
total of:
●	 Your nonbusiness capital gains that are
more than the total of your nonbusiness
capital losses and excess nonbusiness
deductions (line 10), and
●	 Your total business capital gains without
regard to any Section 1202 exclusion
(line 12).
Line 23–Montana NOLs from other years. You
cannot deduct any NOL carryovers or carrybacks
from other years. Enter the total amount of your
NOL deduction for losses from other years that
you reported on Form 2, Montana Subtractions
Schedule, line 22. Estates and Trusts, use
Form FID-3, Schedule B, line 7.
Line 24. If line 24 is more than zero, you do not
have an NOL. If line 24 is less than zero, this is
your Montana NOL for the year.

Column II–Montana Source Losses
(Nonresident/Part-Year Resident)

If Column I, line 24 shows an NOL and your
Montana source income for the NOL year is less
than zero, your Montana NOL from Column I may
include Montana source losses. Complete Column
II to determine if you have a Montana source loss to
report on Form 2, Nonresident/Part-Year Resident
Ratio Schedule or Form FID-3, Schedule F.
If Column I, line 24 is zero or more, skip
Column II. You do not have a Montana NOL, or
your Montana NOL does not include Montana
source losses.
Line 1a. Enter your Montana source losses reported
on Form 2, Nonresident/Part-Year Resident
Ratio Schedule, line 16. Estates and trusts use
Form FID-3, Schedule F, Column B, line 14.
Line 1b. If you are a nonresident or part-year
resident individual, estate, or trust, enter 0 (zero).
Lines 2 through 5. Follow the instructions
for Column I, but limit the reporting to items
of income and losses included on Form 2,
Nonresident/Part-Year Resident Schedule.
Estates and trusts enter the amounts from
Form FID-3, Schedule F.

2023 Montana Net Operating Loss (NOL)

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Line 6. Nonresident or part-year resident
individuals, estates, or trusts, enter 0 (zero).
Lines 7 through 22. Follow the instructions
for Column I, but limit the reporting to items
of income and losses reported on Form 2,
Nonresident/Part-Year Resident Schedule.
Estates and trusts report the amounts from
Form FID-3, Schedule F.
Line 23. Individuals, report the amount of
Montana source NOLs from your Form 2,
Nonresident/ Part-Year Resident Ratio Schedule,
line 15. Estates and trusts report the amount
of Montana source NOLs from Schedule F,
Column B, line 13.
Line 24. If line 24 is zero or more, you do not
have any Montana source losses included in your
Montana NOL.

Farming NOL Carryback
Schedule
If you do not have a loss from a farming
business, do not complete this schedule.
Use the Farming NOL Carryback Schedule to
determine the amount of loss from a farming
business incurred in 2023 that you may carry back.
See IRS Publications 225 and 536 for more
information about farming businesses and the
carryback limitations.

Waiving the Carryback Period for
Farming Losses

You can choose not to carry back your NOL from
a farming business by checking the box in the
waiver section on Form 2, page 2 for individuals
and Form FID-3, page 7 for estates and trusts.
You must make this election before the due date
(including the extended due date) of your 2023
tax return. If you have more than one NOL from
a farming business, you must make a separate
election for each one.
If you have elected to not carry back your
farming loss, do not complete this schedule.
Montana NOL carryforwards are repealed
beginning with Tax Year 2024.

How to Claim Refunds from
Carryback Years

You can claim a refund by filing an amended
income tax return. You must file an amended
return for each year to which you can apply a
farming NOL to. Complete the Farming NOL
Carryback Schedule with each amended return to
determine how much of your farming loss can be
applied and carried over.

How to Complete the Farming
NOL Carryback Schedule

Complete a column for each tax year of your NOL
carryback period starting with the earliest year. If
line 9 on that column is more than zero, carry this
amount to line 1 of the column for the next year.
The Montana farming loss reported in the
carryback periods may include NOL deduction
amounts from previous years. For example,
the 2022 Class B Montana NOL deduction and
Class A Montana NOL deduction may have been
used to refigure your Montana taxable income,
therefore the only Montana NOL deduction to
remove from your taxable income is the 2023
Montana NOL deduction.
Important note for nonresidents and
part-year residents: Complete the Farming
NOL Carryback Schedule for the amounts
reported on Class B NOL Schedule,
Column I, and complete another schedule for
the amounts reported on Column II.
The Montana NOL you carry back from Class B
NOL Schedule, Column II is limited to the Montana
source income reported on the 2021 and
2022 Form 2, Nonresident/Part-Year Resident
Ratio Schedules for individuals or Form FID-3,
Schedule F for estates and trusts.

Farming NOL Carryback
Schedule– Line Instructions

Line 1. Enter the carryback amount from
Column I, line 24 of the Class B NOL Schedule.
Nonresidents and part-year residents enter the
carryback amount from Column II, line 24.

2023 Montana Net Operating Loss (NOL)

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Line 2. Enter your Montana taxable income from
Form 2, line 17. Estates and trusts enter the
amount from Form FID-3, line 24. Nonresidents
and part-year residents, this amount is your
Montana source income from your Form 2,
Nonresident/Part-Year Resident Ratio Schedule
for the corresponding tax year. Nonresident
estates and trusts use the Montana source
income from Form FID-3, Schedule F.
Line 3–Net Capital Loss Deduction. Enter the
loss amount as a positive number, if any, as shown
(or as previously adjusted) from Form 1040,
Schedule D, line 21. Nonresidents and part-year
residents will enter the Montana source loss
amount as a positive number, if any, as shown (or
as previously adjusted) from Form 2, Nonresident /
Part-Year Resident Ratio Schedule or Form FID-3,
Schedule F for the corresponding year.
Line 4–Section 1202 Exclusion. Enter any gain
as a positive number that you excluded under
Section 1202 on the sale or exchange of qualified
small business stock.
Line 5–Adjustment to Montana Adjusted Gross
Income. If you entered an amount on lines 3 or 4,
or if you changed your Montana filing status, you
must recalculate certain income and deductions.
These include:
●	 The special allowance for passive activity
losses from rental real estate activities
●	 IRA deductions
●	 Student loan interest deduction
●	 Tuition and fees deduction
●	 Montana taxable Social Security benefits
●	 Excludable savings bond interest
●	 Excludable employer-provided adoption
benefits
●	 Montana partial pension, annuity, and IRA
exemption
For purposes of calculating your adjustment to
each of these items, your Montana Adjusted
Gross Income is increased by the total of the
amounts on lines 3 and 4, and any other changes
you made if you amended your return.

Line 6–Adjustment to Montana Itemized
Deductions. Skip this line if, for the applicable
carryback year, you:
●	 Did not itemize deductions
●	 Did not change your Montana filing status
on your amended return; or
●	 The amounts on lines 3 and 4 are zero.
Otherwise, complete lines 10 through 32. Enter
on the amount from line 32 on line 6.
Estates and trusts. Recompute the deductions
shown (or as previously adjusted) on Form FID-3,
line 15a, and any casualty or theft losses shown
(or as previously adjusted) on federal Form 4684,
Casualties and Thefts, line 18, by substituting
modified adjusted gross income (see below) for
the adjusted gross income of the estate or trust.
Subtract the recomputed deductions and losses
from the deductions and losses previously shown
and enter the difference on line 6.
Line 7. Enter the exemption(s) for the tax year
above.
Line 8–Modified taxable income. Add lines 2
through 7. If zero or less, enter 0 (zero).
Modified adjusted gross income for estates
and trusts. For purposes of calculating casualty
or theft losses, determine your modified adjusted
gross income by adding the total of the amounts
from lines 3 and 4 to the adjusted gross income
previously used to calculate these losses.
Line 9–Farming NOL Carryover. Report the
amount on line 9 in the 2021 column on line 1 of
the 2022 column. Tax Year 2022 is the last year
the Montana NOL carryover deduction applies.
The Montana NOL carryover deduction is repealed
beginning in Tax Year 2024.

Adjustment to Itemized
Deductions (for Individuals)

This section helps you determine the adjustments
applicable to the itemized deductions using the
Montana modified adjusted gross income as
required by statute. It requires the use of figures
that were reported on Form 2, Itemized Deductions
Schedule. If you change your filing status when you
amend your return you must adjust your itemized
deductions accordingly.

2023 Montana Net Operating Loss (NOL)

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Line 10–Montana Adjusted Gross Income before
Class B NOL deduction. This is the Montana
Adjusted Gross Income for the corresponding tax
year. This amount may include a Class A NOL.
Line 19–Recalculated Mortgage Insurance
Premiums. If line 12 is more than $100,000,
complete the Mortgage Insurance Premiums
Deduction Worksheet below. If line 12 is
$100,000 or less, do not complete the worksheet.
Instead, enter the amount from line 18 on line 19
and enter $0 on line 20.

Mortgage Insurance Premiums
Deduction Worksheet–Line 19
1 Enter the total premiums you paid for
qualified mortgage insurance for a contract
issued after December 31, 2006

1

2 Enter the amount from line 18

2

3 Enter $100,000

3

Montana Excess Business Loss
Taxpayers are subject to the federal excess
business loss limitation (EBL) for tax years
beginning after 2020 and before 2027. Business
losses of more than $289,000 ($578,000 if filing
jointly) are limited to that amount. Taxpayers with
federal losses in excess of these amounts are
subject to the Montana EBL.
Your federal EBL adjustment is reported in your
Federal Adjusted Gross Income on Form 2,
Schedule 1, line 8o.

4 Is the amount on line 2 more than the amount on line 3?
	Yes	 No
If No. Your deduction is not limited. Enter
the amount from line 18 on line 19 and enter
0 (zero) on line 20. Do not complete the
rest of this worksheet.
If Yes. Subtract line 3 from line 2. If the result
is not a multiple of $1,000, increase it to the next
multiple of $1,000. For example, increase $425
to $1,000, increase $2,025 to $3,000, etc.
4
5 Divide line 4 by $10,000. Enter the result as a
decimal. If the result is 1.0 or more, enter 1. 5
6 Multiply line 1 by line 5.

For Montana NOL carryback purposes, you must
reduce any charitable contributions carryover to the
extent that the NOL carryover on Tax Year 2021
Column, line 9 is increased by any adjustment to
charitable contributions.

6

7 Recalculated mortgage insurance premiums
deduction. Subtract line 6 from line 1. Enter the
result here and on line 19.
7

Line 25–Recalculated Charitable
Contributions. Recalculate your charitable
contributions using line 23 as your adjusted gross
income unless, for any preceding tax year:

Residents: If you are married filing separately
on the same form, your EBL adjustment must
be recalculated and assigned to the spouse
who incurred the loss. Report your federal
EBL adjustment from Schedule 1, line 8o on
Form 2, Subtractions Schedule, line 22. Then,
use federal Form 461 to calculate your Montana
EBL adjustment using the single filing threshold.
Report your Montana EBL adjustment on Form 2,
Additions Schedule, line 14.
Do not make any adjustments to your EBL
adjustment if you are a resident using the same
filing status as reported on your federal return.
Nonresidents: Your Montana EBL is based on
your Montana sourced income/loss reported on
the Form 2 Nonresident/Part-year Resident Ratio
Schedule. The resulting Montana EBL adjustment
is added back to your Montana source income.

Additionally, if you are married filing separately
on the same form, your EBL adjustment must
●	 You entered an amount other than zero on
be recalculated and assigned to the spouse
line 24; and
who incurred the loss. Follow the instructions for
●	 You had any items of income or
resident taxpayers above to determine your EBL
deductions based on adjusted gross
adjustment for a single taxpayer, then use that
income that are listed in the instructions for information to compute your Montana EBL.
line 6 above.
Use Montana Limitation on Business Losses
Schedule to determine the Montana EBL.

2023 Montana Net Operating Loss (NOL)

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Nonresident Limitation on
Montana Business Losses
Schedule Line Instructions

Lines 1 through 12. Complete Limitation on
Montana Business Losses Schedule in the same
manner as the federal Form 461, but only report
Montana source income and loss. Individuals
use the corresponding Montana source income
and loss reported on Form 2, Nonresident/
Part-Year Resident Ratio Schedule to complete
lines 1 through 12. Estates and trusts use the
corresponding Montana source income and loss
reported on Form FID-3, Schedule F to complete
lines 1 through 12.
Line 15. Enter the federal EBL from your federal
Form 461.
Line 17. Enter the federal filing status threshold that
corresponds with your Montana filing status. If you
are married filing separately on the same form, use
the filing status threshold for a single taxpayer.
Line 19. If the resulting figure on this line is a
negative amount, then it is your Montana EBL.
Although it is a loss, you will report this figure as a
positive number on Form 2, Nonresident/Part-year
Resident Ratio Schedule, line 13. Estates
and trusts enter this amount on Form FID-3,
Schedule F, line 13.
Questions? Call us at (406) 444-6900, or
Montana Relay at 711 for the hearing impaired.

2023 Montana Net Operating Loss (NOL)

Page vii

2023 Montana Net Operating Loss (NOL)
for Individuals, Estates, and Trusts

Form NOL
V1 6/2023
Clear Form

15-30-2119, MCA, and ARM 42.15.318, ARM 42.30.106

Calendar year 2023, or tax year beginning______________________________ , 2023 and ending____________________________
First name, middle initial, and last name

Social Security Number

Spouse’s first name, middle initial, and last name

Spouse’s Social Security Number

Entity Name (if fiduciary)

Federal Employer Identification Number

I
Class B NOL Schedule

NOL

1a Column I: Montana Adjusted Gross Income; Column II: Montana source income. (See instructions)

1a

1b Standard deduction or itemized deductions taken on Form 2.
(Estates and trusts, enter the charitable deduction reported on FID-3, line 13.)

1b

1c Individuals must subtract line 1b from line 1a. Estates and trusts must add lines 1a and 1b.

1c

2 Nonbusiness capital losses before limitation. Enter as a positive number.

2

3 Nonbusiness capital gains (without regard to any Section 1202 exclusion).

3

4 If line 2 is more than line 3, enter the difference; otherwise, enter 0 (zero).

4

5 If line 3 is more than line 2, enter the difference; otherwise, enter 0 (zero).

5

6 Nonbusiness deductions. (See instructions)

6

7 Nonbusiness income other than capital gains. (See instructions)

7

8 Add lines 5 and 7.

8

9 If line 6 is more than line 8, enter the difference; otherwise, enter 0 (zero).

9

10 If line 8 is more than line 6, enter the difference; otherwise, enter 0 (zero).
Do not enter more than the amount on line 5.

10

11 Business capital losses before limitation. Enter as a positive number.

11

12 Business capital gains (without regard to any Section 1202 exclusion).

12

13 Add lines 10 and 12.

13

14 Subtract line 13 from line 11. If zero or less, enter 0 (zero).

14

15 Add lines 4 and 14.

15

16 Enter the loss, if any, from line 16 of your Schedule D (Form 1040 or 1040-SR). Estates and trusts
enter the loss, if any, from line 19 (column 3), of Schedule D (Form 1041).
Enter as a positive number. If there is no loss on that line (and no Section 1202 exclusion),
skip lines 16 through 21 and enter the amount from line 15 on line 22.

16

17 Section 1202 exclusion. Enter as a positive number.

17

18 Subtract line 17 from line 16. If zero or less, enter 0 (zero).

18

19 Enter any loss, from line 21 of your Schedule D (Form 1040 or 1040-SR).
Estates and trusts, enter any loss from line 20 of Schedule D (Form 1041). Enter as a positive number.

19

20 If line 18 is more than line 19, enter the difference; otherwise, enter 0 (zero).

20

21 If line 19 is more than line 18, enter the difference; otherwise, enter 0 (zero).

21

22 Subtract line 20 from line 15. If zero or less, enter 0 (zero).

22

23 NOL deduction for losses from other years. Enter as a positive number.

23

24 NOL. Combine lines 1c, 9, 17, and 21 through 23. If the result is less than zero, enter here.
If the result is zero or more, you do not have an NOL.

24

2023 Montana Net Operating Loss (NOL)

II
Montana
Losses

Page 1

Form NOL Page 2	

Calendar year 2023 or tax year beginning _______________________________ 2023 and ending_____________________________

First name, middle initial, and last name

Social Security Number

Spouse’s first name, middle initial, and last name

Spouse’s Social Security Number

Entity Name (if fiduciary)

Federal Employer Identification Number

Farming NOL Carryback Schedule

2023 NOL Applied to
Tax Year 2021

2023 NOL Applied to
Tax Year 2022

Complete the 2021 column before the 2022 column
1 NOL deduction. (See instructions) Enter as a positive number.
1
2 Montana taxable income before any Class B NOL carryback
(See instructions). Estates and trusts, increase this amount by the sum of
charitable deduction and income distribution deduction.
2
3 Net capital loss deduction. (See instructions)
3
4 Section 1202 exclusion. Enter as a positive number.
4
5 Adjustment to Montana Adjusted Gross Income. (See instructions)
5
6 Adjustment to Montana itemized deductions. (See instructions)
6
7 Individuals, enter deduction for exemptions.
Estates and trusts, enter exemption amount.
7
8 Modified taxable income. Add lines 2 through 7. If zero or less, enter 0 (zero).
8
9 Subtract line 8 from line 1. If zero or less, enter 0 (zero).
This is your farming NOL carryover. 9
Adjustments to Itemized Deductions
Complete lines 10 through 32 for the carryback years for which you itemized deductions only if line 3 or 4 above is more than zero.
10 Montana Adjusted Gross Income without the NOL deduction for the NOL year
entered above.
10
11 Add lines 3 through 5
11
12 Add lines 10 and 11. This is your modified adjusted gross income.
12
13 Medical expenses from Form 2, Itemized Deductions Schedule, line 1a
(or as previously adjusted).
13
14 Medical expenses from Form 2, Itemized Deductions Schedule, line 1
(or as previously adjusted).
14
15 Multiply line 12 by 7.5% (0.075)
15
16 Subtract line 15 from line 14. If zero or less, enter 0 (zero)
16
17 Subtract line 16 from line 13
17
18 Mortgage insurance premiums from Form 2, Itemized Deductions Schedule
(or as previously adjusted).
18
19 Refigured mortgage insurance premiums (See instructions)
19
20 Subtract line 19 from line 18.
20
21 Modified adjusted gross income from line 12
21
22 Enter as a positive number any NOL carryback from a year before 2023 that
was deducted to figure line 10
22
23 Add lines 21 and 22 (add back previous year’s Class A NOL)
23
24 Charitable contributions (including any carryovers) from Form 2, Itemized
Deductions Schedule (or as previously adjusted)
24
25 Refigured charitable contributions (See instructions)
25
26 Subtract line 25 from line 24
26
27 Casualty and theft losses from federal Form 4684, line 18 (or as previously adjusted) 27
28 Casualty and theft losses from federal Form 4684, line 16 (or as previously adjusted) 28
29 Multiply line 21 by 10% (0.10)
29
30 Subtract line 29 from line 28. If zero or less enter “0” (zero).
30
31 Subtract line 30 from line 27
31
32 Combine lines 17, 20, 26, and 31. Enter the result here and on line 6 above.
32

If you file your Montana tax return electronically, you do not need to mail this schedule to us unless we ask you for a copy. When you file
electronically, you signify that you have retained the required documents in your tax records and will provide them upon the department’s request.

Form NOL Page 3	

Calendar year 2023 or tax year beginning _______________________________ 2023 and ending_____________________________

First name, middle initial, and last name

Social Security Number

Spouse’s first name, middle initial, and last name

Spouse’s Social Security Number

Entity Name (if fiduciary)

Federal Employer Identification Number

Nonresident Montana Limitation on Business Losses Schedule
Part I Montana Total Income/Loss Items
1 Reserved for future use.

1

2 Enter amount from Form 2, Nonresident/Part-Year Resident Ratio Schedule, line 6.

2

3 Enter amount from Form 2, Nonresident/Part-Year Resident Ratio Schedule, line 7.

3

4 Enter amount from Form 2, Nonresident/Part-Year Resident Ratio Schedule, line 8.

4

5 Enter amount from Form 2, Nonresident/Part-Year Resident Ratio Schedule, line 10.

5

6 Enter amount from Form 2, Nonresident/Part-Year Resident Ratio Schedule, line 11.

6

7 Reserved for future use.

7

8 Any other Montana source income, gain, or losses from a trade or business not reported on lines 1 through 7.

8

9 Combine lines 1 through 8.

9

Part II Montana Adjustment for Amounts Not Attributable to Trade or Business
10 Enter any Montana source income or gain reported on lines 1 through 8 that is not attributable to a
trade or business. (See instructions)

10

11 Enter any Montana source losses or deductions reported on lines 1 through 8 that are not attributable
to a trade or business. (See instructions)

11

12 Subtract line 11 from line 10.

12

Part III Montana Limitation on Losses
13 If line 12 is a negative number, enter it here as a positive number. If line 12 is a positive number,
enter it here as a negative number.

13

14 Add lines 9 and 13.

14

15 Enter amount from federal Form 461, line 14.

15

16 Divide line 14 by line 15. This is your Montana EBL ratio.

16

17 Federal filing status threshold ($289,000 ($578,000 if filing jointly)).

17

18 Multiply line 16 by line 17.

18

19 Add lines 14 and 18.

19

If you file your Montana tax return electronically, you do not need to mail this schedule to us unless we ask you for a copy. When you file
electronically, you signify that you have retained the required documents in your tax records and will provide them upon the department’s request.