Form RPD-41369 Net Operating Loss Carryforward Schedule

Enter the federal exemption amount reported on Form 2012 PIT 1 line 13 Enter the itemized or standard deduction amount reported on Form 2012 PIT 1 line 12 Enter the taxable refunds credits or offsets of state and local income taxes reported on Schedule in the current tax year + + = + = + Enter the additions to federal income from Form 2012 PIT 1 line 11 + Enter the amount of state and local income or general sales tax deduction reported on Form 2012 PIT 1 line 10 2012 New Mexico Net Operating Loss Carryforward Schedule 2012 New Mexico Net Operating Loss Carryforward Schedule 2012 PIT ADJ line 20 Enter the sum of lines 1 2 and 3 less the sum of lines 4 through 6 but not below zero This is the About the New Mexico Net Operating Loss All New Mexico Net Operating Losses (NM NOL) must flow from a federal net operating loss You cannot have a NM NOL without first having a federal net operating loss Also enter this amount in line 1 at the bottom of Column 4 and reported in Column 2 subtract the amounts included in Columns 4 through 6 back and may only be carried forward for five years or until the total amount of the loss carryover has been used whichever occurs first You cannot apply a NM NOL carryforward until the following tax year provided you have filed a timely return or until the first tax year that begins after the date you file a return establishing Column 3 Enter the 2012 NM net income before any NM NOL carryforward is applied Complete Worksheet 2 using the information from your 2012 PIT 1 return Column 4 Enter the portion of the NM NOL incurred (Col 2) that was used during tax year 2012 The total of Column 4 (Line 1) must be equal to line 9 of Column 5 Year loss applied These columns are used to record how a prior year NM NOL was used For each prior year NM NOL incurred complete Column 5 Column 6 NOL expired Enter the amount of NM NOL that expires in the current year because the balance of the remaining NM NOL balance cannot be carried Column 7 NOL carryforward available for next year Enter the amount of NM NOL that will be available for carryforward to next year From the NM NOL incurred Column 7 show the balance of NM NOL carryforward available for next tax year This schedule must be filed with the New Mexico 2012 Complete the above Carryforward Schedule using the instructions and Worksheets 1 and 2 in these instructions Do not submit Work sheets 1 and 2 to the Department Worksheet 1 provides guidance for computing the NM NOL incurred in prior years Use Worksheet 2 to compute the 2012 NM net income before NM NOL in Column 3 Computing the net income before NM NOL is applied and the loss used Enter the lesser of lines 7 and 8 This is the excludable New Mexico NOL carryforward amount Enter the sum of prior year NM NOL carryforward available Example: Form PIT 1 Personal Income Tax Return if reporting a NM NOL deduction from a carryforward on Schedule PIT ADJ line 7 forward for more than 5 years Unlike a federal net operating loss carryforward a New Mexico net operating loss incurred in tax years after 1990 cannot be carried From the 2012 PIT 1: Enter the federal adjusted gross income reported on Form 2012 PIT 1 line 9 In tax year 2012 taxpayer X has tax due and wishes to carryforward it s prior year losses to offset the income on the 2012 personal income tax return X incurred a NM NOL in 2007 in the amount of $48 000 and in tax year 2008 in the amount of $97 000 In tax years 2009 2010 and 2011 X computed its current year net income before NM NOL is applied to be $7 000 $1 500 and $2 500 respectively X used the NM NOL incurred in tax year 2007 towards the net income for tax years 2009 2010 and 2011 For the current tax year 2012 X computes the net taxable income before NM NOL to be $8 000 X may use the loss incurred in 2007 towards the 2012 net income X cannot carryforward the balance of the 2007 NM NOL for more than 5 years so Column 6 reports the amount of NM NOL that expires during 2012 and may not be excluded from NM net income during 2013 X completes Form RPD 41369 as follows: incurred in the tax year of the loss When completing Worksheet 1 use the information from the PIT 1 tax return filed for the year the NM NOL was incurred Instructions for completing the NM NOL Carryforward Schedule Column 1 Enter the tax year in which a NM NOL was incurred to which a NM NOL carryforward is available to be used in the current year Row 1 includes only information for the 2012 tax year Subsequent rows are to be used for prior year NM NOLs Column 2 Enter the amount of NM NOL that was incurred during the year in column 1 You may use Worksheet 1 below to determine the amount of NM NOL Instructions Page 1 of 3 Instructions Page 2 of 3 Instructions Page 3 of 3 Line 1 Federal NOL as defined by Section 172(c) of the Internal Revenue Service for the tax year of the loss Line 1 of the schedule above is the sum of the NM NOL carryforward loss used in the 2012 tax year (the sum of Column 4) The amount in line 1 of the worksheet is entered on 2012 Schedule PIT ADJ line 7 For each row showing a prior year NM NOL incurred complete the row showing when the NM NOL was incurred how it has been used and the NM NOL carryforward balance available next year Line 2 Interest received on U S Government obligations less related expenses and reported on the New Mexico tax return for the tax year This amount is reported on Schedule PIT ADJ in the tax year of the loss Line 3 Enter the sum of lines 1 and 2 This is the NM NOL loss incurred in the year of the loss to be reported in column 2 of the Carryforward Schedule net income before the NM NOL is applied Enter in Column 3 on the next page Transfer the amount from line 7 of Worksheet 2 to the NOL Carryforward Schedule Column 3 Row 1 For any other year leave this column blank Purpose of this form Use this form to compute your excludable New Mexico net operating loss (NM NOL) carryforward deduction from the current year New Mexico personal income tax For each prior year NM NOL carryforward also show how the credit was used in Columns 4 through 6 In showing the year(s) the loss was used and the amount of NM NOL that was used in the year listed at the top of column State of New Mexico Taxation and Revenue Department State of New Mexico Taxation and Revenue Department the current tax year This amount must match the amount you entered on Schedule PIT ADJ line 7 New Mexico Net Operating Loss the loss Unlike a federal net operating loss carryforward a NM NOL incurred in tax years after 1990 cannot be carried back and may only be carried forward for five years or until the total amount of the loss carryforward has been used whichever occurs first You cannot apply a NM NOL carryforward until the following tax year provided you have filed a timely return or until the first tax year that begins after the date you file a return establishing the loss Worksheet 1 for Column 2 of the Carryforward Schedule Computing the NM NOL incurred in prior years Worksheet 2 and may not exceed the current year NM net income before NM NOL carryforward Column 3 row 1 This is your excludable NM NOL used in Worksheet 2 for Columns 3 and 4 of the Carryforward Schedule