potential violation of law. Do not include
amounts identied in a court order or
settlement agreement as restitution or
as an amount paid to come into compli-
ance with the law.
Line 11
Suspended Loss From Bonus
Depreciaon
If you are claiming a suspended loss
from 2001 through 2005 or 2008 through
2016 on your federal return that was
generated by bonus depreciation, and you
did not add back 80 percent of the bonus
depreciation in those years, complete the
Worksheet for Line 11.
Line 12
Capital Gain Poron of a Lump-Sum
Distribuon From a Qualied Rere-
ment Plan
If you received a qualifying lump-sum
distribution in 2017 and you chose the
capital gain election on federal Form
4972, enter the capital gain from line 6
of federal Form 4972. Include a copy of
federal Form 4972 when you le your
return.
Line 13
Net Operang Loss (NOL) Carryover
Adjustment
The Minnesota Legislature did not adopt
the provisions of the Worker, Homeown-
ership, and Business Assistance Act of
2009 (WHBA). Under this Act, taxpayers
are allowed to carryback 3, 4, or 5 years
an NOL generated in 2008 or 2009. For
federal purposes, any remaining NOL
that was not fully absorbed in the car-
ryback years can be carried forward for
up to 20 years, beginning in 2010. If you
used any of that carryforward on your
2017 federal return, add back that amount
as a positive number on line 13.
Line 14
If you made a non-qualied withdrawal
from a rst-time homebuyer account,
you may be required to include those
amounts in your taxable income.
income. Complete and include Schedule
M1HOME, First-time Homebuyer
Savings Account, to determine your
addition.
Line 15
If you are required to report accelerated
gains from an installment sale in 2017,
complete and enclose Schedule M1AR,
Accelerated Recognition of Installment
Sale Gains.
Subtracons
Line 18
Net Interest From U.S. Bonds
Include federally taxable interest you
received from:
• U.S. bonds, bills, notes, savings
bonds, certicates of indebtedness
• Sallie Mae bonds
• Dividends paid to you by mutual funds
that are attributable to such bonds
• U.S. Government interest and divi-
dends you received as a partner of
a partnership, a shareholder of an S
corporation, or beneciary of a trust
Reduce these amounts by any related
investment interest and other expenses
deducted on your federal return relating
to this income.
Do not include interest or dividends at-
tributable to Ginnie Mae, Fannie Mae, or
Freddie Mac bonds.
See Income Tax Fact Sheet 13, U.S. Gov-
ernment Interest, if you received interest
from a government source not listed.
Line 19
K-12 Educaon Expense Subtracon
If you purchased qualifying educational
materials or services in 2017 for your
qualifying child’s K–12 education, you
may be able to reduce your taxable
income.
Note: If you qualify for the K-12 Educa-
tion Credit complete Schedule M1ED
before entering an amount on this line
(see instructions for line 3 of Schedule
M1REF, Individual Refundable Credits,
in the M1 instruction booklet). Qualify-
ing expenses not used for the credit and
any tuition expenses which do not qualify
for the credit may be used for the sub-
traction. You can not claim both the credit
and a subtraction for the same expenses.
Complete the Worksheet for Line 19
if you entered an amount on Schedule
M1ED, line 18.
To subtract your education expenses, the
child must:
• be your child, adopted child, stepchild,
grandchild, or foster child who lived
with you in the United States for more
than half of the year;
• have been in grades K–12 during
2017;
• have attended a public, private, or
home school in Minnesota, Iowa,
North Dakota, South Dakota, or Wis-
consin; and
• not be claimed as a qualifying child on
another individual’s return.
Worksheet for Line 11
1 Bonus depreciation from 2001 through 2005 or
2008 through 2016 that was not added back on your Form M1 ............
2 Total suspended loss from activity remaining after 2015 .................
3 Subtract step 2 from step 1 (if a negative amount, enter zero) .............
4 Multiply step 3 by 80% (.80) ......................................
5 Total of the 80% bonus depreciation addition passed through
to you as a beneciary (from line 4 of Schedule KF) ....................
6 Add steps 4 and 5. Enter here
and on Schedule M1M, line 11 ............
Connued
M1M-3
Worksheet for Line 19
If you qualify for the K–12 education credit and you cannot use all of your education expenses
on Schedule M1ED, determine line 19 of Schedule M1M by completing the following steps:
1 Qualifying tuition expenses.........................................
2 Qualifying computer expenses in excess of $200, up to a maximum of $200 . .
Complete steps 3–6 if on Schedule M1ED line 17 is less than line 16.
3 Line 15 of Schedule M1ED ........................................
4 Line 18 of Schedule M1ED ........................................
5 Multiply step 4 by 1.333 ...........................................
6 Subtract step 5 from step 3 .........................................
7 Add steps 1, 2, and 6 .............................................
Enter the result from step 7—up to the maximum subtraction amount per child—on Schedule
M1M, line 19.
