NOL PHASE-IN EXCEPTIONS (RITA
Municipalities and Taxing Jurisdictions)
Beginning with losses incurred in 2017, a net
operating loss may be carried forward for 5 years, in
all municipalities. Losses incurred in tax years 2017
through 2021 are subject to a 50% phase-in
limitation. The amount of net operating loss carry
forward that may be utilized is limited to the lesser of
50% of the carried forward loss or 50% of that year's
income. For municipalities or taxing jurisdictions that
first imposed a tax on or after January 1, 2016, net
operating loss carryforward amounts are not phased-
in and may be used in full. See the list below of
RITA municipalities or taxing jurisdictions with a tax
first imposed on or after January 1, 2016.
Form 37 (2020) Note: Separate worksheets for Prior Year Loss Carryforwards have been provided.
Enter the lesser of Row 1 or Row 6 on Tax Year 2020 Form 37, Schedule J, Column 7 Line 28.
RESIDENT M UNICIPALITY LOSS CARRYFORWARD WORKSHEET: RITA RESIDENTS ONLY
Use this worksheet to calculate the allowable Prior Year Loss Carryforward for
Tax Year 2020, for your Resident Municipality. The worksheet will calculate the
loss amounts allowable for tax years prior to 2017, if applicable, and the 2017,
2018 and 2019 allowable losses, which will be reported in Tax Year 2020 as the
Prior Year Loss Carryforward.
Print the name of the applicable Resident Municipality where the loss was
incurred.
Enter the total gain from Tax Year 2020 Form 37, Schedule J, Column 7 Lines 26 and 27. Note:
If the total is a net loss, do NOT complete this worksheet.
Enter the unutilized, unexpired loss originating before Tax Year 2017 (OLD LOSS). For the
municipalities and tax jurisdictions listed in the NOL Phase-In Exceptions box, net operating loss
carryforward amounts are not phased-in and may be used in full and SKIP Row 3.
Enter unutilized, unexpired losses originating in Tax Year 2017 or later (NEW LOSS). For the
municipalities and tax jurisdictions listed in the NOL Phase-In Exceptions box, SKIP Row 5.
Add Row 2 and Row 5. For the municipalities and tax jurisdictions listed in the NOL Phase-In
Exceptions box, add Rows 2 and 4.
3. Subtract Row 2 from Row 1. If amount is less than $0, enter $0.
If using NEW losses first, for municipalities subject to the 50% phase-in, enter the lesser of 50% of
Row 1 or 50% of Row 4 OR if using OLD losses first, for municipalities subject to the 50% phase-in,
enter the lesser of 50% of Row 3 or 50% of Row 4.
104 105 106 107
204 205 206 207
( ) ( ) ( ) (
304 305 306 307
( ) ( ) ( ) (
WORKPLACE LOSS CARRYFORWARD WORKSHEET
Use this worksheet to calculate the net loss from prior years
available to offset current year workplace locations.
Print the name of the applicable location where the loss was
incurred.
From the Tax Year 2020 Form 37, Schedule J, Line
27 - ENTER each net taxable workplace gain. If
Line 27 is a loss, do NOT complete worksheet for
any Location with a net taxable loss.
Enter unutilized, unexpired losses originating before tax year
2017 (OLD LOSS). For the municipalities and tax jurisdictions
listed in the NOL Phase-In Exceptions box, net operating loss
carryforward amounts are not phased-in and may be used in
full and SKIP Row 3.
Subtract Row 2 from Row 1. If less than $0, enter $0.
Enter unutilized, unexpired losses originating in tax year 2017
or later (NEW LOSS). For the municipalities and tax jurisdictions
listed in the NOL Phase-In Exceptions box, SKIP Row 5.
If using NEW losses first, for municipalities subject to the 50%
phase-in, enter the lesser of 50% of Row 1 or 50% of Row 4.
OR if using OLD losses first, for municipalities subject to the
50% phase-in, enter the lesser of 50% of Row 3 or 50% of Row
4.
Enter the lesser of Row 1 or Row 6 on Tax Year 2020 Form
37, Schedule J Line 30.
Add Row 2 and Row 5. For the municipalities and tax
jurisdictions listed in the NOL Phase-In Exceptions box, add
Rows 2 and 4.
