2015 Schedule Nol Instructions
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1
22015 Schedule NOL Instructions
Net Operating Loss Carryforward
enced, or if it has previously deducted all of the available loss,
enter zero.
A corporation taxable under M.G.L. Ch. 63, sec. 39 or an S corpo-
ration taxable under M.G.L. Ch. 63, sec. 32D may carry forward
• Corporations that filed Form 355U, Schedule U-ST in the most
and deduct an NOL. The number of years for which such a loss
recent prior year should refer to the amount from 2013 Schedule
may be carried forward is 5 taxable years (for losses incurred in
U-ST, line 24 (if a loss) or to 2013 Schedule NOL line 3.
taxable years beginning prior to January 1, 2010) or for 20 taxable
• Corporations that filed Form 355 or Form 355S in the most re-
years (for losses incurred in taxable years beginning on or after
cent year should refer to the amount from 2013 Schedule E, line
January 1, 2010). NOLs cannot be carried back, and capital
23 (if a loss) or to 2013 Schedule NOL, line 3 less any portion of
losses cannot be carried forward or back.
those losses deducted in that immediate prior year.
A corporation claiming a net operating loss files Schedule NOL
• Corporations that did not file a Massachusetts return in 2013 see
with its return to report the amounts available and deducted. A
special instructions below for calculating the amount of an NOL
corporation’s oldest NOL carry forwards (as determined by the tax
available from a prior year in which a Massachusetts return was
year to which such carry forwards relate) must be used first. In ad-
filed.
dition to the ordering rules, a taxpayer that is subject to a limitation
under IRC sec. 382 must separately determine and apply its
• The amount deducted is the amount of each NOL actually de-
Massachusetts sec. 382 limitation under 830 CMR 63.30.2(11)(b).
ducted in the current year. Taxpayers filing a combined report
Further, a separate limitation applies where the member has
(Form 355U) may be eligible to share certain 2009 and later NOLs
losses from years prior to its filing a combined report (see 830
with other members of the combined group (see 830 CMR
CMR 63.32B.2 (8) (f)). 2
63.32B.2 (8)). A corporation filing as part of a combined group in a
combined report that is allowing other members of that group to
A corporation claiming a NOL carryover from prior taxable years
use any portion of its available NOL should add the amount
files this schedule even if no deduction is taken in the current
shared with affiliates to the amount they are deducting from their
year. A corporation that has no Massachusetts NOL carryover
own income and enter the total here.
from any prior year does not file this schedule.
• The Remaining NOL for each year is the amount available less
Header Information
the amount used or shared. Except where a limitation applies, all
Enter the name of the corporation and its Federal Taxpayer Identi-
of the oldest taxable year’s NOL will be used before any of a sub-
fication number. If the corporation has undergone an ownership
sequent NOL is deducted.
change as described in Internal Revenue Code (IRC) sec. 382(g)
Line 4
enter the date of the most recent change on the schedule; if there
has been no such change, enter the corporation’s date of incorpo-
Enter the total of the post apportionment NOL available. This will
ration or organization.
be the total of the carryover amounts shown in line 3 plus any cur-
rent year loss amount to be carried over if included in line 1. Tax-
Line 1
payers claiming deductions under MGL c. 63 s. 38H (schedule E,
Enter Corporation’s total net income or (loss) allocated or appor-
line 24) must adjust line 1 amount by adding back any portion of
tioned to Massachusetts for the current year. This will be the
the loss attributable to that deduction.
amount on Form 355 or Form 355S Schedule E, line 25 or Form
Line 5
355U, Schedule U-ST, line 24.
Enter the total of the line 3 “NOL used or shared” amounts as
Line 2
shown above. For corporations filing Form 355 or Form 355S or
Indicate if the amount of any NOL carryover as reported in line 3
corporations filing Form 355U, Schedule U-ST but not actually
for any prior taxable year differs from the ending amount shown
sharing any of their NOL carryover, this will not be more than the
as remaining available for carryover by the corporation on the
amount on line 1.
prior year return. Briefly explain the reasons for the change, and
Line 6
the date of any amended filings. Note that, in the case of a merger
of two or more corporations, any NOL of a corporation absorbed
Subtract the amount on line 5 from the amount on line 4. This
in the merger is lost (see 830 CMR 63.30.2(11).)
should equal the total of the Remaining NOL amounts as shown
above plus any current year net operating loss from line 1.
Line 3
Line 7
Beginning with the oldest tax year for which a NOL is carried for-
ward to the current year, enter the period end date and the
A net operating loss for a taxable year beginning before January
amount of the NOL available, the NOL used (deducted) in the cur-
1, 2010 may be carried forward for up to 5 taxable years. Losses
rent year and the amount remaining at the end of the current year.
incurred in later years may be carried forward for 20 taxable
years. A short taxable year is treated as a full taxable year for this
• The period end date should be the period end date as shown on
purpose. If the oldest loss shown above is expiring at the end of
the return for the taxable year in which the loss was incurred. Tax-
the current year, enter the amount of the expiring loss here.
payers should enter each subsequent prior year in order.
• The post apportionment NOL available reported should be the
amount as reduced by deductions claimed in prior taxable years.
If the corporation did not have a loss in the taxable year refer-
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