Instructions For Schedule U-Nols - Member'S Shared Loss Carry Forwards

Schedule U-NOLS requires that a member must first determine the amount of its income

against which a shared NOL carry forward may be deducted. If after deducting its own NOL

carry forwards, the member has positive taxable income derived from the activities of the

combined group, it must identify, for the NOL carry forward(s) that it seeks to share, the

ending date of the tax year in which the underlying loss was incurred and the amount of the

deduction claimed. Schedule U-NOLS permits the member to share NOL carry forwards

from one or more other contributing members from any or all of up to five preceding tax

years, assuming that the requirements for sharing such NOL carry forwards are otherwise

met. The deduction is only allowed to the extent that the member’s taxable income derived

from the activities of the combined group exceeds zero.

Header for Schedule U-NOLS

Enter the name of the taxable member filing the U-NOLS (using the name referenced on

Schedule U-ST), the member’s Federal Identification number and the beginning and ending

dates of the combined group’s tax year.

Also enter the unitary business identifier to identify the unitary business from which income

referenced on lines 3 through 7 derives. This is the income from which the taxable member

seeks to deduct the NOL carry forward.

In the case of an affiliated group election, the unitary business identifier will be 1. If the NOL

relates to a prior year in which an affiliated group election was also in place, the loss may not

be shared unless both corporations were members of the same affiliated group in the year in

which the loss was incurred. If the NOL relates to a year for which no affiliated group

election was made, the loss may not be shared unless both corporations were members of a

combined group engaged in the same unitary business in the year to which the loss carry

forward relates.

Where no affiliated group election has been made, unless both the income and the NOL carry

forward relate to the same unitary business, the sharing of the carry forward is not permitted.

If the combined group is engaged in more than one unitary business and has not made an

affiliated group election, losses from one unitary business may only be shared as between

members engaged in the same unitary business. In such cases, where a member seeks to share

NOL carry forwards that relate to more than one unitary business, a separate Schedule U-

NOLS is required as to each such business.

Line Instructions

Line 1. Indicate if the combined group is making or is subject to an affiliated group election

or a worldwide election in the current year. If applicable, check the box indicating which

election in effect.

Line 2. Indicate if the member taking the NOL carryforward is a mutual fund service

corporation. Mutual fund service corporations that derive separate shares of income from a

unitary business measured by their mutual fund sales activities and their other business

activities must total the amounts from those Schedules U-MSI when completing lines 3

through 7 of this schedule.

Instructions For Schedule U-Nols - Member'S Shared Loss Carry Forwards - 2012 Page 2