Schedule INL: Illinois Net Loss Adjustments for Cooperatives and REMIC Owners (2024)
Illinois · Illinois DOR · Used for tax years 2024
Illinois Schedule INL is attached to Form IL-1120 to figure Illinois net loss adjustments for cooperatives and REMIC residual interest owners. It includes cooperative elections for treating patronage and nonpatronage losses and calculations of Illinois income or loss.
Who files this form
Schedule INL is for cooperatives making Illinois net loss adjustments and owners of REMIC residual interests.
In Step 1, check the reason you are completing the schedule:
- Cooperative adjustments: Complete Steps 2 and 3, subject to the election in Step 2.
- REMIC adjustments: Complete Step 4.
A cooperative that checks Step 2, Line 1a must not complete Step 3 or complete Schedule INL in subsequent years.
What you'll need
Have the following forms and information available:
- Form IL-1120: Schedule INL uses your name, federal employer identification number (FEIN), and income, adjustment, and apportionment amounts from this return.
- For cooperatives: Federal Form 1120-C, Schedule G, Line 10, or Form 8817, Line 29, for federal taxable income. Step 3 separates patronage and nonpatronage amounts.
- For REMIC residual interest owners: Your recomputed federal taxable income for Step 4, Line 2. The form refers to instructions for this calculation, but no instructions were provided here.
How to file
Attach Schedule INL to your Form IL-1120.
Enter the year-ending month and year, your name as shown on Form IL-1120, and your FEIN. Check the applicable adjustment box in Step 1 and complete the applicable steps.
The supplied form does not give a mailing address or e-filing directions.
Common mistakes
- Missing the first-year election: If a cooperative checks Step 2, Line 1, it must also check either Line 1a or Line 1b.
- Continuing after choosing Line 1a: If you elect to allow patronage losses to offset nonpatronage income, do not complete Step 3 or complete this schedule in subsequent years.
- Using the wrong sign for REMIC subtractions: Step 4, Line 4 requires total subtraction modifications to be entered as a negative number.
- Continuing when Step 4 tells you to stop: If Step 4, Line 15 is positive or zero, stop and do not complete the rest of the form.
- Leaving out required information: The form warns that failure to provide required information could result in a penalty.
Questions people ask
What election does a cooperative make in its first year filing Schedule INL?
In Step 2, check Line 1 and choose whether to compute Illinois net income for all taxable years allowing patronage losses to offset nonpatronage income, or without allowing that offset.
What if a cooperative elected a federal offset of nonpatronage loss against patronage income?
Check Step 2, Line 2 if you made that election for federal purposes for this tax year.
Where does a cooperative report patronage and nonpatronage amounts?
Step 3 uses Column A for patronage amounts and Column B for nonpatronage amounts.
When does Step 4 show a loss carryforward for a REMIC residual interest owner?
Step 4, Line 18 adds Lines 15 and 17. If the result is negative, the form says this is the amount you may use as a net loss deduction (NLD) carryforward in subsequent tax years.