dkma5019
Level 1
10-08-2021
05:56 PM
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Taxpayer is non resident of MN with losses from MN partnerships.
For 2019, taxpayer had NOL and carried it back on federal return. Can you only carry forward for MN?
The federal NOL is $4.2m but the calculation for excess business loss on the '19 MN return was $4.7m. Which amount do you use for the NOL? $4.2 or $4.7m?
On the MN return for '20, the NOL is subtracted on Sch M1NC which flows to line 14, Sch M1NR. If your MN losses are different then the federal, would you put the MN loss in column B?
NOL deduction is limited to 80% of income before NOL deduction? Does the balance of NOL not used carry forward?
Taxpayer also has bonus depreciation from prior years that have not been added back due because no losses have been taken.
Taxpayer has $5m in MN loss to date. $2m are from bonus depreciation. In '20, taxpayer had income and was allowed to deduct $1m in losses.
Do you have to add back the $1m in losses or do you wait until all your losses have been used?
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