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    4                                                                                         FINAL DRAFT — 10/2/23                                                                                                                4
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    6                                                                                                                                                                                             *232311*                         6
    7  2023 Schedule M2SB, Income Tax Computation for S Portion of ESBT                                                                                                                                                            7
    8                                                                                                                                                                                                                              8
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    10 ESTATE TRUST NAME                                                                                                             123456789                                                 123456789                           10
    11 Name of Trust                                                                                                                 Federal ID Number                                         Minnesota ID Number                 11
    12  SCORPORATIONS SPORTION OF ESBT HOLDS ST                                                                                      123456789                                                                                     12
    13 Name of S-Corporation S Portion of ESBT Holds Stock In                                                                        Federal ID Number of S-Corporation                                                            13
    14  ADDITIONAL SCORPORATIONS SPORTION OF ESB                                                                                     123456789                                                                                     14
    15 Additional S-Corporation S Portion of ESBT Holds Stock In                                                                     Federal ID Number of Additional S-Corporation                                                 15
    16                                                                                                                                                                                                                             16
    17                                                                                                                                                                                                                             17
    18   1  Federal taxable income of S portion (enclose federal computation)   . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . .  . . . .  1                                               12345678                  18
    19                                                                                                                                                                                                                             19
    20   2  Fiduciary’s deductions and losses not allowed by Minnesota (enclose Schedule M2NM)                                                       . . .  . . . . . .  . . . . .  . .  2               12345678                  20
    21                                                                                                                                                                                                                             21
    22   3  Additions (from line 27, on page 2 of this schedule)                         . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . .  3          12345678                  22
    23                                                                                                                                                                                                                             23
    24   4  Add lines 1 through 3  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . .4. . . .             12345678                  24
    25                                                                                                                                                                                                                             25
    26   5  Subtractions (from line 43, on page 3 of this schedule)    . . .  . . . . . .  . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  .  5                                  12345678                  26
    27   6  Fiduciary’s income from non-Minnesota sources                                                                                                                                                                          27
    28      (enclose Schedule M2NM)            . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . .6. .  . .         12345678                  28
    29                                                                                                                                                                                                                             29
    30   7  Add lines 5 and 6    . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . 7.  . .  .      12345678                  30
    31                                                                                                                                                                                                                             31
    32   8  Minnesota taxable net income. Subtract line 7 from line 4   . . . . .  . . . . . .  . . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . .  .   8                                       12345678                  32
    33                                                                                                                                                                                                                             33
    34   9  Tax from table in Form M2 instructions   . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . . .  . . . . .  . . 9. . .  .                          12345678                  34
    35                                                                                                                                                                                                                             35
    36  10  Total of tax from Schedule M2MT (enclose Schedule M2MT)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   10               12345678                  36
    37                                                                                                                                                                                                                             37
    38  11  Total of 2023 tax for S portion. Add lines 9 and 10 and include amount on line 11 of Form M2    . .  . . . . .  . .  11                                                                      12345678                  38
    39                                                                                                                                                                                                                             39
    40 You must include this schedule and a copy of federal computations for the S portion of the ESBT when you file Form M2.                                                                                                      40
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       2023 M2SB, page 2
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    6                                                                                                                                                                       *232321*                                       6
    7  Additions to Income                                                                                                                                                                                                 7
    8                                                                                                                                                                                                                      8
    9    12    State and municipal bond interest from outside Minnesota    . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . .12 . .  .                                   12345678          9
    10                                                                                                                                                                                                                     10
    11     13  State taxes deducted in arriving at net income   . . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  .  13                     12345678          11
    12   14    Expenses deducted on your federal return that are attributable to income not taxed                                                                                                                          12
    13         by Minnesota (other than interest or mutual fund dividends from U.S. bonds)                             . . .  . . . . . .  . . . . .  . . . . . . .  . . . .  .  14                      12345678          13
    14   15    80 percent of the suspended loss from 2001–2005 or 2008–2022 on your                                                                                                                                        14
    15         federal return that was generated by bonus depreciation (see Form M2 instructions)   . . . . .  . . . . .  . . . . . .  . . .  .  15                                                      12345678          15
    16                                                                                                                                                                                                                     16
    17   16    80 percent of federal bonus depreciation    . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .   16 . . . .                    12345678          17
    18                                                                                                                                                                                                                     18
    19     17  Section 199A qualified business income  . . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . .17 .  . .  .                  12345678          19
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    21     18  This line intentionally left blank  . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  .  18                       21
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    23     19  Net operating loss carryover adjustment   . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . .  .  19                12345678          23
    24                                                                                                                                                                                                                     24
    25   20    Foreign derived intangible income (FDII) deduction . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . .20  . .  .                          12345678          25
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    27   21    This line intentionally left blank  . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  .  21                       27
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    29      22 This line intentionally left blank  . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .     22                       29
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    31   23    This line intentionally left blank  . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .     23                       31
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    33   24    This line intentionally left blank  . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .     24                       33
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    35   25    This line intentionally left blank  . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .     25                       35
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    37   26    This line intentionally left blank  . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .     26                       37
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    39   27    Add lines 12 through 26. Enter the result here and on line 3   . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . .                              27     12345678          39
    40                                                                                                                                                                                                                     40
    41 Subtractions from Income                                                                                                                                                                                            41
    42                                                                                                                                                                                                                     42
    43   28    Interest on U.S. government bond obligations, minus any expenses                                                                                                                                            43
    44         deducted on your federal return that are attributable to this income                    . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  .   28                      12345678          44
    45                                                                                                                                                                                                                     45
    46     29  State income tax refund included on federal return   . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . .                         29     12345678          46
    47                                                                                                                                                                                                                     47
    48   30    Federal bonus depreciation subtraction (see Form M2 instructions)                     . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . .   30                      12345678          48
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    50   31    This line intentionally left blank  . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .   31                         50
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    52   32    Subtraction for railroad maintenance expenses  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . .   32                        12345678          52
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    54   33    Net operating loss carryover adjustment   . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . .   33                  12345678          54
    55                                                                                                                                                                                                                     55
    56   34    Deferred foreign income (section 965)  . . . .  . . . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . .   34                 12345678          56
    57                                                                                                                                                                                                                     57
    58   35    Disallowed section 280E expenses of a licensed cannabis business  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . .   35                                        12345678          58
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    60      36 Delayed business interest  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . 36     12345678          60
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    4  2023 M2SB, page 3                                                                                                                                                                                               4
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    10   37  Delayed net operating loss deduction  .  . . . . .  . . . . . . .  . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . .  .  37           12345678          10
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    12    38 This line intentionally left blank  . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .   38                       12
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    16   40  This line intentionally left blank  . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .   40                       16
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    18   41  This line intentionally left blank  . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .   41                       18
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    20   42  This line intentionally left blank  . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .   42                       20
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    22   43  Add lines 28 through 42. Enter the result here and on line 5  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  . . . . .  . . .  .  43                             12345678          22
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2023 Schedule M2SB Instructions

Who Must File Schedule M2SB
If a trust is filing as an Electing Small Business Trust (ESBT), you must file Schedule M2SB to report all items relating to the S Portion of the 
trust.
Report all the income from the S Portion of an ESBT on Schedule M2SB and include a copy of Schedule KS. Enter the name and federal 
tax ID of each S-Corporation on the Form M2SB. If you have to enter more than two entities and need additional spaces, include them on an 
attached statement.
Apportion all income, deductions and modifications based upon the S-corporation’s Minnesota apportionment factor reported on Schedule 
KS, line 47. Include an attachment detailing the calculation.

Line Instructions
Round amounts to the nearest whole dollar.
Line 1
Enter the federal taxable income of the S Portion that you calculated on your federal schedule. Be sure to include a copy of the federal sched-
ule when you file Form M2 and Schedule M2SB.
Line 2
Use Schedule M2NM, Non-Minnesota Source Income and Related Expenses, to determine the amount to include on line 2.
Line 6
Use Schedule M2NM to determine the amount to include on line 6.
Line 10
Complete a separate Schedule M2MT for the S Portion of the trust. See the instructions for Schedule M2MT for details on completing this 
schedule for the S Portion of the ESBT.
Lines 12 - 43
To complete lines 12 through 43, see instructions for Form M2 lines 41 through 72.