*232101*

2023 Schedule M2NM, Non-Minnesota Source Income

and Related Expenses

Name of Estate or Trust                                                                                Federal ID Number   Minnesota ID Number

                                                                                                   A                     B                                  C 
                                                                                                   Total Amount       Minnesota Portion    Non-Minnesota Portion 
                                                                                                                 (round amounts to the nearest whole dollar)

 1  Interest income    . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . .  .    a1                b1                    c1

 2  Dividend income  . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . .  .    a2                  b2                    c2

  3 Business income or loss  . . . . .  . . . . .  . . . . . .  . . . . .  . . . .  .    a3                       b3                    c3

 4  Capital gain or loss (see instructions)   . .  . . . . . .  . . . . .  .  .   a4                              b4                    c4
 5  Income from rents, royalties, partnerships, 
    other estates and trusts, etc.  . . .  . . . . . .  . . . . .  . . . . . . .  .   a5                          b5                    c5

 6  Farm income or loss  . . . .  . . . . . .  . . . . . .  . . . . . .  . . . . .  .  .    a6                    b6                    c6

  7  Ordinary gain or loss (see instructions)    . .  . . . . . . .  . . .  .   a7                                b7                    c7

 8  Other income     . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . . .  . . . . .  . a8                 b8                    c8

 9  Total of lines 1 through 8  . .  . . . . . . .  . . . . .  . . . . . .  . . . .  .   a9                       b9                    c9 

 10  State taxes deducted addition  . . .  . . . . . .  . . . . .  . . . .  .    a10                              b10       c10 

 11  Bonus depreciation addition  . . . . . . .  . . . . .  . . . . . .  . .  .  a11                              b11        c11 

 12  This line intentionally left blank . . .  . . . . . .  . . . . .  . . . .  .  a12                            b12        c12 

 13 Net operating loss (NOL) carryover adjustment   .  . . .  .  a13                                              b13       c13 

 14  Other required additions (see instructions)  . . .  . . . . .  .  a14                                        b14       c14 

 15  Add lines 9 through 14 for each column  . . .  . . . . . .  . .  .  a15                                      b15      c15 

 16  Interest deduction . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . .  .  a16                    b16       c16 

 17  Taxes deduction . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . .  .  a17                   b17        c17 

 18  Fiduciary fees deduction   . . .  . . . . . .  . . . . .  . . . . .  . . . .  .  a18                         b18       c18 

 19  Charitable deduction   . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . a19                      b19       c19 
 20  Attorney, accountant, and return preparer 
    fees deduction . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . . . . . .  .  . a20                 b20       c20 

 21  Other deductions  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . . .  . .  . a21                    b21       c21 

                                                                                                   9995

2023 M2NM, page 2

                                                                                                                                                                       *232111*

Name of Estate or Trust                                                                      Federal ID Number Minnesota ID Number

 22  State income tax refund subtraction  . . .  . . . . . .  . . . . .  .  . a22              b22               c22   

 23  Bonus depreciation subtraction     . . .  . . . . . .  . . . . .  . . . . .  . a23        b23              c23   

 24  This line intentionally left blank . . .  . . . . . .  . . . . .  . . . . . . a24         b24              c24   

 25  Net operating loss carryover adjustment  . . . . .  . . . . . .  .  a25                   b25              c25   

 26 Delayed business interest . . .  . . . . . .  . . . . .  . . . . . . .  . . .  . a26       b26              c26   

 27 Delayed net operating loss deduction . . .  . . . . . .  . . . . .  .a27                   b27              c27   

 28  Other required subtractions (see instructions) . . .  . . . . . a28                       b28              c28   

 29  Add lines 16 through 28 for each column . . .  . . . . . .  . . . a29                     b29               c29  

 30  Subtract line c29 from line c15, and enter on line 30  . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . .  . . . . .  . . . . . . .  . . . . .  . 30        
     If the result is a positive, enter it on Form M2, line 7.
     If the result is a negative, enter it as a positive number on Form M2, line 2.

You must include this schedule when you file your Form M2.

                                                                                         9995

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.