Minnesota will apply the net operating loss limitation on a pre-apportionment basis when calculating corporate income tax. The Department of Revenue accepts the Minnesota Tax Court’s decision in Sinclair Broadcast Group, Inc. v. Comm’r of Revenue. In the decision, the court held that the IRC Sec. 382 limitation is:
- calculated in the same manner as the federal IRC Sec. 382 limitation; and
- not apportioned for corporate franchise tax purposes.
The department advised taxpayers of its position in a revenue notice. The notice revokes Revenue Notice #99-07.
Revenue Notice No. 17-09, Minnesota Department of Revenue, November 6, 2017, ¶204-340
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