M4NP NOL: Net Operating Loss Deduction (2025)
Minnesota · Minnesota DOR · Used for tax years 2025
Minnesota Schedule M4NP NOL calculates the net operating loss deduction for tax-exempt organizations and cooperatives that file federal Form 990-T or 1120-C. It tracks Minnesota taxable net income or loss, losses used, and losses remaining to carry forward, with the deduction ent
Who files this form
The 2025 Schedule M4NP NOL is for tax-exempt organizations and cooperatives that file federal Form 990-T or 1120-C and claim a net operating loss deduction.
Complete a separate Schedule M4NP NOL for each corporation in a unitary group claiming the deduction.
Organizations that file federal Form 1120-H or 1120-POL are not allowed a net operating loss deduction.
What you'll need
To complete the schedule, have these details available:
- Your organization's name, FEIN, and Minnesota Tax ID.
- Minnesota taxable net income or loss from Form M4NP, line 6, for the years listed.
- The years your net operating losses arose, the years you used them, and the losses remaining.
- The loss year's apportionment percentage, if you apportion income to Minnesota.
How to file
Complete Schedule M4NP NOL and attach a copy to your Minnesota tax return.
- List the years used to calculate your net operating losses and the years you used those losses.
- Enter Minnesota taxable net income or loss from Form M4NP, line 6, in the worksheet.
- If a year has a loss, add it to the previous year's losses remaining.
- If a year has income and you use prior losses to reduce it, enter the loss used in the Minnesota Losses Used column. The amount used is limited to 70% of that year's taxable net income.
- Enter the net operating loss deduction on Form M4NP, line 7.
The provided text does not give a mailing address or e-file directions.
Common mistakes
- Exceeding the deduction limit. The deduction cannot exceed 70% of taxable net income in a single taxable year.
- Carrying losses back. Net operating losses may be carried forward only, for 15 years.
- Reusing a loss already deducted. The deduction is for prior-year losses not previously used to offset net income.
- Using the wrong apportionment percentage. If you apportion income to Minnesota, use the percentage from the loss year.
- Creating or increasing a loss with disallowed items. You may not create or increase a net operating loss using the dividends received deduction or the foreign royalties subtraction for tax years beginning before 2013.
- Leaving out required schedules. Attach a copy to your Minnesota return, and complete a separate schedule for each corporation in a unitary group claiming the deduction.
Questions people ask
What does this schedule track?
It shows the sources and uses of your net operating losses, including the years losses arose, the amounts used, and the losses remaining to carry forward.
How much of a prior-year loss can I deduct?
The deduction cannot exceed 70% of taxable net income in a single taxable year. If your business is entirely in Minnesota, you may deduct previously unused losses after applying that limit. If you apportion income to Minnesota, use the loss year's apportionment percentage.
How long can I carry a loss forward?
The carryforward period is 15 years. Net operating losses may be carried forward only.
Where do I report the deduction?
Enter it on Form M4NP, Unrelated Business Income Tax Return, line 7, and attach a copy of Schedule M4NP NOL to your Minnesota tax return.
Are acquired net operating losses limited?
Yes. Acquired net operating losses are subject to limitations determined under Internal Revenue Code section 382(g).