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    4                                                                                    FINAL DRAFT — 10/2/23                                                                       4
    5                                                                                                                                                                                5
    6                                                                                                                                                 *232101*                       6
    7                                                                                                                                                                                7
    8  2023 Schedule M2NM, Non-Minnesota Source Income                                                                                                                               8
    9                                                                                                                                                                                9
    10 and Related Expenses                                                                                                                                                          10
    11                                                                                                                                                                               11
    12 ESTATE TRUST NAMEXXXXXXXXXXXXXXXXXXXXXXXX 123456789                                                                                           123456789                       12
    13 Name of Estate or Trust                                                                                          Federal ID Number            Minnesota ID Number             13
    14                                                                                                                                                                               14
    15                                                                                                       A                            B                           C              15
    16                                                                                                      Total Amount           Minnesota Portion         Non-Minnesota Portion   16
    17                                                                                                                    (round amounts to the nearest whole dollar)                17
    18                                                                                                                                                                               18
    19   1  Interest income    . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . a1.        12345678          b1  12345678           c1           12345678          19
    20                                                                                                                                                                               20
    21   2  Dividend income  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . a2.          12345678          b2  12345678           c2           12345678          21
    22                                                                                                                                                                               22
    23   3  Business income or loss  . . . . .  . . . . .  . . . . . .  . . . . .  . . . .  a3.              12345678          b3  12345678           c3           12345678          23
    24                                                                                                                                                                               24
    25   4  Capital gain or loss (see instructions)   . .  . . . . . .  . . . . .  . a4.                     12345678          b4  12345678           c4           12345678          25
    26   5  Income from rents, royalties, partnerships,                                                                                                                              26
    27      other estates and trusts, etc.  . . .  . . . . . .  . . . . .  . . . . . . . a5.                 12345678          b5  12345678           c5           12345678          27
    28                                                                                                                                                                               28
    29   6  Farm income or loss  . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  . a6.            12345678          b6  12345678           c6           12345678          29
    30                                                                                                                                                                               30
    31   7  Ordinary gain or loss                   (see instructions)    . .  . . . . . . .  . . .  .  a7   12345678          b7  12345678           c7           12345678          31
    32                                                                                                                                                                               32
    33   8  Other income     . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . . .  . . . .a8.  .      12345678          b8  12345678           c8           12345678          33
    34                                                                                                                                                                               34
    35   9  Total of lines 1 through 8  . .  . . . . . . .  . . . . .  . . . . . .  . . . . a9.              12345678          b9  12345678           c9           12345678          35
    36                                                                                                                                                                               36
    37  10  State taxes deducted addition  . . .  . . . . . .  . . . . .  . . . .  a10.                      12345678          b10 12345678  c10                   12345678          37
    38                                                                                                                                                                               38
    39  11  Bonus depreciation addition  . . . . . . .  . . . . .  . . . . . .  . .  a11.                    12345678          b11 12345678  c11                   12345678          39
    40                                                                                                                                                                               40
    41  12  This line intentionally left blank . . .  . . . . . .  . . . . .  . . . .  .  a12                                  b12                     c12                           41
    42                                                                                                                                                                               42
    43  13  Net operating loss (NOL) carryover adjustment   .  . . .  . a13                                  12345678          b13 12345678  c13                   12345678          43
    44                                                                                                                                                                               44
    45  14  Other required additions (see instructions)  . . .  . . . . .  . a14                             12345678          b14 12345678  c14                   12345678          45
    46                                                                                                                                                                               46
    47  15  Add lines 9 through 14 for each column  . . .  . . . . . .  . . a15.                             12345678          b15 12345678  c15                   12345678          47
    48                                                                                                                                                                               48
    49  16  Interest deduction . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . a16.  .          12345678          b16 12345678            c16         12345678          49
    50                                                                                                                                                                               50
    51  17  Taxes deduction . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . a17.  .         12345678          b17 12345678            c17         12345678          51
    52                                                                                                                                                                               52
    53  18  Fiduciary fees deduction   . . .  . . . . . .  . . . . .  . . . . .  . . . . a18.                12345678          b18 12345678            c18         12345678          53
    54                                                                                                                                                                               54
    55  19  Charitable deduction   . . . . .  . . . . . .  . . . . .  . . . . . .  . . . .a19.  .            12345678          b19 12345678            c19         12345678          55
    56  20  Attorney, accountant, and return preparer                                                                                                                                56
    57      fees deduction . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . .a20.  .  .      12345678          b20 12345678            c20         12345678          57
    58                                                                                                                                                                               58
    59  21  Other deductions  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  .a21.  .          12345678          b21 12345678            c21         12345678          59
    60                                                                                                                                                                               60
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    63                                                                                                       9995                                                                    63
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    65                                                                                                                                                                               65

    1                                                                                                                                                                                                     1
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    4  2023 M2NM, page 2                                                                                                                                                                                  4
    5                                                                                                                                                                                                     5
    6                                                                                                                                                                         *232111*                    6
    7                                                                                                                                                                                                     7
    8  ESTATE TRUST NAMEXXXXXXXXXXXXXXXXXXXXXXXX 123456789                                                                                123456789                                                       8
    9  Name of Estate or Trust                                                                               Federal ID Number            Minnesota ID Number                                             9
    10                                                                                                                                                                                                    10
    11  22  State income tax refund subtraction  . . .  . . . . . .  . . . . . a22.  .            12345678  b22     12345678  c22                                                       12345678          11
    12                                                                                                                                                                                                    12
    13  23  Bonus depreciation subtraction     . . .  . . . . . .  . . . . .  . . . .a23.  .      12345678  b23     12345678                c23                                         12345678          13
    14                                                                                                                                                                                                    14
    15  24  This line intentionally left blank . . .  . . . . . .  . . . . .  . . . . .  . a24                 b24                          c24                                                           15
    16                                                                                                                                                                                                    16
    17  25  Net operating loss carryover adjustment  . . . . .  . . . . . . a25.                  12345678  b25     12345678                c25                                         12345678          17
    18                                                                                                                                                                                                    18
    19  26 Delayed business interest . . .  . . . . . .  . . . . .  . . . . . . .  . .a26.  .     12345678  b26     12345678                c26                                         12345678          19
    20                                                                                                                                                                                                    20
    21  27 Delayed net operating loss deduction . . .  . . . . . .  . . . . . a27.                12345678  b27     12345678  c27                                                       12345678          21
    22                                                                                                                                                                                                    22
    23  28  Other required subtractions (see instructions) . . .  . . . .  . a28                  12345678     b28  12345678  c28                                                       12345678          23
    24                                                                                                                                                                                                    24
    25  29  Add lines 16 through 28 for each column            . . .  . . . . . .  . .  . a29     12345678     b29  12345678  c29                                                       12345678          25
    26                                                                                                                                                                                                    26
    27  30  Subtract line c29 from line c15, and enter on line 30  . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . 30        12345678          27
    28      If the result is a positive, enter it on Form M2, line 7.                                                                                                                                     28
    29      If the result is a negative, enter it as a positive number on Form M2, line 2.                                                                                                                29
    30                                                                                                                                                                                                    30
    31                                                                                                                                                                                                    31
    32 You must include this schedule when you file your Form M2.                                                                                                                                         32
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    63                                                                                            9995                                                                                                    63
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    65                                                                                                                                                                                                    65

2023 Schedule M2NM Instructions

Purpose of Schedule M2NM
File Schedule M2NM with Form M2 if your estate or trust had income or related expenses from non-Minnesota sources. Schedule M2NM must be 
completed to include amounts on the following form lines:
•  Lines 2 and 7 of Form M2 
•  Lines 2 and 7 of Form M2X
•  Lines 2 and 6 of Form M2SB

Income and Gains from Non-Minnesota Sources
Minnesota fiduciary income tax is based on income from Minnesota sources only. Non-Minnesota income and gains must be subtracted from 
federal taxable income.
Intangible income earned by a resident estate or trust is assigned to Minnesota. Intangible income is income from intangible personal property, 
such as stocks or bonds.
Non-Minnesota source income and gains include:
•   gains from the sale or other disposition of real or tangible property outside Minnesota,
•   income or gains from the operation of a farm outside Minnesota,
•   profit from a trade or business outside Minnesota,
•   income from partnerships, S corporations and other fiduciaries from sources outside Minnesota,
•   rents and royalties from land, buildings, machinery or other tangible property outside Minnesota, and
•   interest, dividends, income and gains from stocks, bonds and other securities for nonresident estates and trusts, unless the income was gener-
ated by a trade or business (S corporations and partnerships) and was apportioned to Minnesota.

Expenses and Losses from Non-Minnesota Sources
Expenses. Interest and other expenses deducted on your federal return which relate to income or gains from non-Minnesota sources, such as 
expenses incurred in connection with a probate proceeding in another state, must be added to your taxable income. [M.S. 290.17, subd. 1(b)]. 
Only those expenses that relate to the non-Minnesota income are considered to be from non-Minnesota sources. 
Direct expenses should be allocated to the income to which it is associated. 
Indirect expenses should be allocated to each class of income in the proportion that each class of income bears to the total income. To deter-
mine this proportion, divide line 9 Column C by line 9 Column A. Multiply the result by the indirect expenses to determine the amount from 
non-Minnesota sources.
Losses. Non-Minnesota source losses must be added back to the extent the losses are deducted in determining your federal taxable income or 
loss.
Non-Minnesota source losses include:
• losses deducted on the sale or other disposition of real or tangible property outside Minnesota,
• casualty losses deducted on property outside Minnesota,
• losses deducted on the operation of a farm outside Minnesota,
•  losses from partnerships, S corporations and other fiduciaries from sources outside Minnesota,
• losses deducted on the operation of a trade or business from sources outside Minnesota, and
• losses deducted on the sale or other disposition of stocks, bonds, securities and other intangible property by nonresident estates and trusts.

Column Instructions
The sum of Column B and Column C must equal Column A.
Column A – Total Amount
Include the appropriate amount from your 2023 federal and Minnesota income tax returns. See the line instructions for Column A below.
Column B – Minnesota Portion
Allocate income and expenses to Minnesota according to Minn. Stat. sections 290.17, 290.191, and 290.20. If the estate or trust is a partner, 
shareholder, or beneficiary, include the amounts from Schedules KPI, KS, or KF.  
Column C – Non-Minnesota Portion
Use the instructions above to determine amounts to be included in Column C.

2023 Schedule M2NM Instructions (continued)

Line Instructions
Enter the total income, gains, losses, and deductions to the extent the amounts are included in your federal taxable income. Include only the 
portion that is retained by the estate or trust. Do not include any amounts that are being distributed to the beneficiary. 
In column A, enter the total amounts from your federal or Minnesota income tax return. In column B, include the Minnesota source portion of 
column A.  In column C, include the portion of column A that is from sources outside of Minnesota. 
Round amounts to the nearest whole dollar.
Line 1
Include the portion of line 1 of federal Form 1041 that is retained by the estate or trust.
Line 2
Include the portion of line 2a of federal Form 1041 that is retained by the estate or trust.
Line 3
Include the portion of line 3 of federal Form 1041 that is retained by the estate or trust.
Line 4
Include the portion of line 4 of federal Form 1041 that is retained by the estate or trust. Include in Column A the amount of the capital gain or loss 
reported on line 4 of the federal Form 1041. Include in Column B the amount of the capital gain that is sourced to Minnesota based upon the instruc-
tions on page 1. Include in Column C the result of Column A minus Column B. 
For example, if Minnesota property was sold for a capital gain of $50,000 but your federal return has a total capital loss from all sources of $30,000 
(limited to negative $3,000), report Line 4 as follows:
Column A =  ($3,000) Column B =  $50,000               Column C = ($53,000)
Line 5
Include the portion of line 5 of federal Form 1041 that is retained by the estate or trust.
Line 6
Include the portion of line 6 of federal Form 1041 that is retained by the estate or trust.
Line 7
Include the portion of line 7 of federal Form 1041 that is retained by the estate or trust. See the line 4 instructions above for additional guidance on 
how to report line 7.
Line 8
Include the portion of line 8 of federal Form 1041 that is retained by the estate or trust.
Line 10
Include the portion of line 42 of Minnesota Form M2 that is retained by the estate or trust.
Line 11
Include the portion of line 45 of Minnesota Form M2 that is retained by the estate or trust.
Line 12
This line is intentionally left blank.
Line 13
Include the portion of line 48 of Minnesota Form M2 that is retained by the estate or trust.
Line 14
Include the portion of lines 41, 43, 44, 46, 49, and 51 of Minnesota Form M2 that is retained by the estate or trust.
Line 16
Include the portion of line 10 of federal Form 1041 that is retained by the estate or trust.
Line 17
Include the portion of line 11 of federal Form 1041 that is retained by the estate or trust.
Line 18
Include the portion of line 12 of federal Form 1041 that is retained by the estate or trust.
Line 19
Include the portion of line 13 of federal Form 1041 that is retained by the estate or trust.
Line 20
Include the portion of line 14 of federal Form 1041 that is retained by the estate or trust.
Line 21
Include the portion of line 15a of federal Form 1041 that is retained by the estate or trust.
Line 22
Include the portion of line 58 of Minnesota Form M2 that is retained by the estate or trust.
Line 23
Include the portion of line 59 of Minnesota Form M2 that is retained by the estate or trust.

2023 Schedule M2NM Instructions (continued)

Line 24
This line is intentionally left blank.
Line 25
Include the portion of line 62 of Minnesota Form M2 that is retained by the estate or trust.
Line 26
Include the portion of line 65 of Minnesota Form M2 that is retained by the estate or trust.
Line 27
Include the portion of line 66 of Minnesota Form M2 that is retained by the estate or trust.
Line 28
Include the portion of lines 57, 61, 63, 64, and 67 of Minnesota Form M2 that is retained by the estate or trust.
Line 30
If the result on line 30 is a positive, enter it on line 7 of Form M2. If the result on line 30 is a negative, enter it as a positive number on line 2 of Form 
M2.