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RPD-41369 2018 State of New Mexico Taxation and Revenue Department
Rev. 10/22/2018
2018 New Mexico Net Operating Loss Carryforward Schedule for Personal Income Tax

Taxpayer’s name SSN

Purpose of This Form
Use this form to calculate 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 you applied the credit in columns 4, 5, and
6. In column 7, show the balance of NM NOL carryforward available for the next tax year. If you are reporting a NM NOL deduction from a
carryforward on Schedule PIT-ADJ, line 7, file this RPD-41369 schedule with New Mexico 2018 Form PIT-1, Personal Income Tax Return.

Col. 1 Col. 2 Col. 3 Col. 4 Col. 5 Col. 6 Col. 7
Tax Year Net Operating 2018 NM 2018 Year Loss Applied NM NOL NM NOL
Loss Incurred Net Income Before Loss Used If you applied the NM NOL reported in column 2 in previous years, enter the Expired Carryforward
in the year in NM NOL The sum of column 4 amount in the column corresponding to the year when you applied it. Available for
column 1 from cannot be greater Next Year
Worksheet 2, line 7 than column 3 for
tax year 2018. 2017 2016 2015 2014 2013

2018

Line 1. Loss used during 2018 tax year. Line 1 must equal Worksheet 2, line 9.
Enter the sum of column 4. Also enter this amount on Schedule PIT-ADJ, line 7.

Complete the Carryforward Schedule above using the instructions and Worksheets 1 and 2 on the next three pages. Do not submit
Worksheets 1 and 2 to the Department. Use Worksheet 1 to calculate the NM NOL incurred in prior years. Use Worksheet 2 to calculate
the 2018 NM net income before the current year NM NOL deduction is applied in column 3, row 1.

Line 1 of the schedule above (the sum of column 4) is the sum of the NM NOL carryforward loss used in the 2018 tax year. On the 2018
Schedule PIT-ADJ, line 7, enter the amount from line 1. For each row showing a prior-year NM NOL incurred, complete the row showing
when you incurred the NM NOL, how it has been applied, any expired amount, and the NM NOL carryforward balance available for next
year.

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RPD-41369 2018 State of New Mexico Taxation and Revenue Department
Rev. 10/22/2018
2018 New Mexico Net Operating Loss Carryforward Schedule for Personal Income Tax Instructions
Page 1 of 3

About the New Mexico Net Operating Loss (NM NOL) from Worksheet 2, line 6 to the NM NOL Carryforward Schedule, column
3, row 1. For any other year, leave this column blank.
All NM NOLs must flow from a federal net operating loss. You cannot have
a NM NOL without first having a federal net operating loss. Column 4. Loss Used. Enter that portion of the NM NOL incurred (col-
umn 2) that you used during tax year 2018. The total of column 4, line 1
Unlike a federal net operating loss carryforward, a New Mexico net operating
must be equal to Worksheet 2, line 9, and may not exceed the current
loss incurred cannot be carried back and if incurred on or after January 1,
year NM net income before NM NOL carryforward shown in column 3, row
2013, may be carried forward for 19 years or until the total amount of the loss
1. This is your excludable NM NOL used in the current tax year. The sum
carryover has been used, whichever occurs first. For a net operating loss that
of column 4 must match the amount you entered on Schedule PIT-ADJ,
was incurred in tax years beginning before January 1, 2013, a New Mexico net
line 7, NM net operating loss.
operating loss may be carried forward for only five years. Refer to regulation
3.3.1.13(E) NMAC 1978, if the net operating loss was incurred in a tax year Column 5. Year Loss Applied. Use the year columns to record how you
beginning prior to January 1, 1991. applied a prior-year NM NOL. Under the column year for each prior-year
NM NOL you incurred, show the amount of NM NOL you applied.
The first year you can apply a NM NOL is:
• If you filed your return on time, you can apply it the following tax year, Column 6. NM NOL Expired. Enter the amount of NM NOL that expires
in the current year because the balance of the remaining NM NOL cannot
or be carried forward for more than 5 years, or for NM NOLs incurred after
• You can apply it the first tax year that begins after the date you file a December 31, 2012, for more than 19 years. See About the New Mexico
return establishing the loss. Net Operating Loss (NM NOL) in the previous column for more details.

Instructions for Completing the NM NOL Carryforward Column 7. NOL Carryforward Available for Next Year. Enter the amount
Schedule of NM NOL that will be available for carryforward the next year. From the
Column 1. Tax Year. Enter the tax year when you incurred a NM NOL to NM NOL you incurred and reported in column 2, subtract the amounts
which a NM NOL carryforward is available to use in the current year. Row included in columns 4, 5, and 6.
1 includes only information for the 2018 tax year. Use subsequent rows
for prior-year NM NOLs.

Column 2. Net Operating Loss Incurred. Enter the amount of NM NOL
you incurred during the year in column 1. Use Worksheet 1 to determine
the amount of NM NOL incurred in the tax year of the loss. When complet-
ing Worksheet 1, use the information from the PIT-1 tax return you filed for
the year you incurred the NM NOL.

Column 3. 2018 NM Net Income Before NM NOL. Enter the 2018 NM
net income before applying any NM NOL deduction. Complete Worksheet
2 using the information from your 2018 PIT-1 return. Transfer the amount

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RPD-41369 2018 State of New Mexico Taxation and Revenue Department
Rev. 10/22/2018
2018 New Mexico Net Operating Loss Carryforward Schedule for Personal Income Tax Instructions
Page 2 of 3

Worksheet 1. For Column 2 of the Carryforward Schedule
Computing NM NOL incurred in prior years

Line 1. Federal NOL as defined by Section 172(c) of the Internal Revenue Service for the tax year of the loss. Enter
the loss amount as a positive number.

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 that you report in
Column 2 of the Carryforward Schedule.

Worksheet 2. For Columns 3 and 4 of the Carryforward Schedule
Computing net income before the current year NM NOL deduction is applied;
use the information on your 2018 PIT-1 and 2017 PIT-ADJ for the entries below.

1. Enter the federal adjusted gross income reported on Form 2018 PIT-1, line 9.

2. + Enter the amount of state and local income tax deduction reported on Form 2018 PIT-1, Line 10. +

3. + Enter the additions to federal adusted gross income from Form 2018 PIT-1, line 11. +

4. - Enter the standard or itemized deduction amount reported on Form 2018 PIT-1, line 12. -

5. - Enter the federal exemption amount reported on Form 2018 PIT-1, line 13. -

6. - Enter the taxable refunds, credits, or offsets of state and local income taxes, reported on Schedule -
2018 PIT-ADJ, line 20.
7. = Enter the sum of lines 1, 2, and 3, less the sum of lines 4 through 6, but not below zero. This is
the net income before applying the NM NOL. Enter in column 3 of the Carryforward Schedule. =

8. Enter the sum of prior-year NM NOL carryforward available.
+

9. Enter the lesser of lines 7 and 8. This is the excludable NM NOL carryforward amount. Also enter
this amount in line 1 at the bottom of column 4. =

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RPD-41369 2018 State of New Mexico Taxation and Revenue Department
Rev. 10/22/2018
2018 New Mexico Net Operating Loss Carryforward Schedule for Personal Income Tax Instructions
Page 3 of 3
Example
In tax year 2018, taxpayer X has tax due and wants to carryforward prior-year losses to offset the income on X’s 2018 personal income tax return. X
incurred an NM NOL of $48,000 in 2013, and an NM NOL of $97,000 in 2014. In tax years 2015, 2016, and 2017, X calculated the current year net
income before applying NM NOL at $7,000, $1,500 and $2,500, respectively. X applied the NM NOL incurred in tax year 2013 towards the net income
for tax years 2015, 2016, and 2017. For current tax year 2018, the net taxable income that X calculates before NM NOL is $8,000. X may use the
loss incurred in 2013 towards X’s 2018 net income. Because X cannot carry forward the balance from the 2013 NM NOL for more than five years, X
reports in Column 6 the amount of NM NOL that expires during 2018, which X cannot exclude from NM net income during 2018. X completes Form
RPD-41369 as shown here.

Col. 1 Col. 2 Col. 3 Col. 4 Col. 5 Col. 6 Col. 7
Tax Year Net Operating 2018 NM 2018 Year Loss Applied NM NOL NM NOL
Loss Incurred Net Income Before Loss Used If you applied the NM NOL reported in column 2 in previous years, enter Expired Carryforward
in the year in NM NOL The sum of column 4 the amount in the column corresponding to the year when you applied it. Available for
column 1 from cannot be greater Next Year
Worksheet 2, line 7 than column 3 for
tax year 2018. 2017 2016 2015 2014 2013

2018 8,000

2014 97,000 97,000

2013 48,000 8,000 2,500 1,500 7,000 29,000 0

Line 1. Loss used during 2018 tax year. 8,000 Line 1 must equal Worksheet 2, line 9.
Enter the sum of column 4. Also enter this amount on Schedule PIT-ADJ, line 7.

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