NOL: Net Operating Loss Deduction (2024)
Minnesota · Minnesota DOR · Used for tax years 2024
Minnesota’s 2024 Schedule NOL tracks the sources and use of a corporation’s net operating losses. It reports taxable net income or loss, Minnesota losses used, the net operating loss deduction entered on Form M4T, line 6, and losses remaining to carry forward.
Who files this form
Schedule NOL shows the sources and use of a corporation’s net operating losses.
- Combined income return filers must complete a separate Schedule NOL for each corporation carrying forward a net operating loss.
- A separate Schedule NOL is required for each corporation in a unitary group claiming a net operating loss deduction.
Complete the schedule and attach a copy to your Minnesota tax return.
What you'll need
Have the following information ready:
- Corporation name, FEIN, and Minnesota Tax ID Number.
- Taxable net income or loss for the years used to calculate the loss and the years losses were used.
- Minnesota losses used and losses remaining for those years.
- The most recent amounts for any year whose return was amended or adjusted.
- The loss-year apportionment percentage, if the corporation apportions its income to Minnesota.
How to file
- Enter the corporation’s name, FEIN, and Minnesota Tax ID Number.
- List only the years used to calculate the net operating loss and the years the losses are used.
- Enter each year’s taxable net income or loss. Use the most recent amounts if a return was amended or adjusted.
- For a loss year, add the loss to the previous year’s losses remaining and enter the total in the Losses Remaining column.
- For an income year when prior losses are used, enter the loss used in the Minnesota Losses Used column, subject to the applicable limit.
- Complete the 2024 summary for the deduction and total losses remaining to carry forward. Enter the deduction on Form M4T, line 6.
- Attach a copy of Schedule NOL to your Minnesota tax return.
The supplied text does not give a mailing address or e-file instructions.
Common mistakes
- Exceeding the deduction limit. For tax years beginning after December 31, 2023, losses used are limited to 70% of taxable net income. The schedule gives different limits for earlier years.
- Carrying losses backward or beyond the allowed period. Losses may be carried forward only, for 15 years.
- Using outdated figures. If a return was amended or adjusted, use the most recent amounts for that year.
- Improperly creating or increasing a loss. Corporations may not do this through the dividends-received deduction on Form M4T, line 8, or the foreign royalties subtraction for tax years beginning before 2013.
- Omitting separate schedules. Each corporation in a unitary group claiming a deduction needs its own Schedule NOL.
- Overlooking acquired-loss limits. Acquired net operating losses are subject to limitations under Internal Revenue Code section 382(g).
Questions people ask
How much can I deduct for 2024?
For tax years beginning after December 31, 2023, the net operating loss deduction is limited to 70% of taxable net income.
Can I carry a loss back to an earlier year?
No. Net operating losses may be carried forward only. The carryforward period is 15 years.
Do I need to list every year?
No. Only list the years used to calculate the net operating loss and the years the losses are used.
How does apportionment affect the deduction?
Corporations that apportion income to Minnesota may deduct previously unused losses at the apportionment percentage of the loss year. Corporations operating entirely in Minnesota may deduct the full amount of previously unused losses after applying the 70% limit.