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

Determination of Taxable Net Income Attributable to the Common Unitary Business

Lines 3 through 7. These lines apply only in the instance in which the combined group is not

subject to an affiliated group election for the current year. In any instance in which the

combined group is subject to an affiliated group election, skip to line 8.

Line 3. Enter the member’s Massachusetts apportioned share of combined sec. 1231 gain or

(loss) from this unitary business. This is the amount from Schedule U-MSI, line 33.

Line 4. Enter the member’s Massachusetts apportioned share of combined capital gain or

(loss) from this unitary business. This is the amount from Schedule U-MSI, line 31.

Line 5. Enter the member’s Massachusetts apportioned share of combined income other than

capital or sec. 1231 gains and losses. This is the amount from Schedule U-MSI, line 29.

Line 6. Enter as a positive adjustment, the amount of any non-deductible capital loss

attributable to this business. If the member’s share of the combined capital gain on line 4

(above) is greater than or equal to zero, or the net capital gain from all sources on Schedule

U-ST, line 20 is greater than zero, enter “0”. Otherwise enter the smaller of the adjustment

required to offset the capital loss on line 4, above (as a positive value), or the adjustment

required to offset the total of the amounts on Schedule U-ST, lines 17, 18 and 19 (also

expressed as a positive value).

Line 7. Combine lines 3 through 6. If less than “0” enter “0” and stop here; the member has

no taxable income from this unitary business.

Line 8. Enter the amount from Schedule U-ST, line 26.

Line 9. Member’s taxable income from which a shared NOL may be deducted. If the group is

subject to an affiliated group election, enter the amount from line 8. All other taxpayers enter

the smaller of the amount on line 7 and the amount on line 8.

Line 10. An NOL carry forward can only be shared when (i) both the member using the carry

forward and the member contributing the carry forward were members of a combined group

engaged in a unitary business, or members of a combined group subject to an affiliated group

election, in the tax year in which the loss was incurred, and (ii) the loss derived from the

activities of such business or affiliated group activities.

Note that an NOL carry forward can never be shared when the underlying loss was incurred

in a tax year beginning prior to January 1, 2009.

Enter the ending date of the oldest tax year in which a loss which may be shared was incurred

in the MM/DD/YYYY format. The use of the NOL carry forward must be consistent with the

requirements and limitations referenced in 830 CMR 63.32B.1 (8).

Line 11. Enter the amount of the shared NOL from the tax year referenced on the prior line

that is being used. The total amount of all shared NOL deducted may not exceed the amount

shown on line 9, above. If more than one other member is contributing an eligible NOL

carry forward from the tax year that is being shared, enter the total amount from all

contributing members being deducted by this member.

If more than one other member has an NOL carry forward that is eligible to be shared with

the member that date back to the tax period referenced on the prior line, and the total amount

available exceeds the amount that can be used by the member filing the Schedule U-NOLS,

the NOL carry forward that is to be used is considered to be shared from each such

contributing member on a pro-rata basis with respect to the amount available.

Instructions For Schedule U-Nols - Member'S Shared Loss Carry Forwards - 2012 Page 3