Minnesota Form M4Np – Fill Out and Use This PDF

2021 M4NP NOL, Net Operating Loss Deduction

For tax-exempt organizations and cooperatives that file federal Form 990-T or 1120-C.

Name of OrganizationFEINMinnesota Tax ID

Year

Minnesota Taxable Net Income/Loss

Minnesota Losses Used Minnesota Losses Carried Back Losses Remaining

Oldest Loss Year

Subsequent Year 1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

2021 Summary:	Net Operating Loss Deduction	Total Losses Remaining (to be carried forward)

Enter on Form M4NP, line 7

9995

2021 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.

Your net operating loss deduction is limited to 80% (0.80) of your taxable net income for the 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 80% (0.80) 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	Taxable Net Income/Loss	Minnesota Losses Used	Minnesota Losses Carried Back		Losses Remaining
Oldest Loss Year
12/31/13	(7,000)	--------			(7,000)
Subsequent Year 1
12/31/14	4,000	(4,000)			(3,000)
2
12/31/15	(5,000)				(8,000)
3	16 ,000	(8,000)	(8,000)		0
12/31/16
4
12/31/17	(13,000)	--------			(5,000)
5	14 ,000	(5,000)			0
12/31/18
6
12/31/19	(7,000)				(7,000)
7
12/31/20	7,500	(6,000)			(1,000)
8
12/31/21	1,000	(800)			(200)
9
10
11
12
13
14
15
		2021 Summary:	Net Operating Loss Deduction	Total Losses Remaining (to be carried forward)
			800		(200)

Enter on Form M4NP, line 7