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Kentucky Other Additions and Subtractions to/from Federal Taxable Income
Schedule O-720 is obsolete, and is no longer supported by the Kentucky Department of Revenue.
Extracted from PDF file 2020-kentucky-schedule-o-720.pdf, last modified October 2010Other Additions and Subtractions to/from Federal Taxable Income
SCHEDULE O-720 41A720-O (11-10) Commonwealth of Kentucky DEPARTMENT OF REVENUE *1000020300* For taxable year ended __ __ / __ __ Mo. Yr. OTHER ADDITIONS AND SUBTRACTIONS TO/FROM FEDERAL TAXABLE INCOME ➤ See instructions. ➤ Attach to Form 720. Name of Corporation Federal Identification Number __ __ — __ __ __ __ __ __ __ Kentucky Corporation/LLET Account Number __ __ __ __ __ __ PART I—ADDITIONS TO FEDERAL TAXABLE INCOME (FORM 720, PART III, LINE 9) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Kentucky capital gain from Kentucky Schedule D, line 14 .......................................................... 1 Loss from Form 4797 found on federal Form 1120, line 9 .......................................................... 2 Gain from Kentucky Form 4797, line 17 ........................................................................................ 3 Safe harbor lease adjustments ..................................................................................................... 4 Federal allowable depletion from Form 1120, line 21 ................................................................. 5 Federal contribution deductions from Form 1120, line 19 .......................................................... 6 Terminal Railroad Corporation adjustments ................................................................................ 7 Federal allowable passive activity loss ........................................................................................ 8 Federal taxable loss of all exempt corporations ......................................................................... 9 Adjustments for qualified construction allowance(s) for short-term lease(s)............................. 10 Other additions (attach explanation) ............................................................................................ 11 Total of lines 1 through 11 (enter on Form 720, Part III, line 9) ................................................... 12 00 00 00 00 00 00 00 00 00 00 00 00 PART II—SUBTRACTIONS FROM FEDERAL TAXABLE INCOME (FORM 720, PART III, LINE 16) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. Capital gain from Form 1120, line 8 .............................................................................................. Gain from Form 4797 found on federal Form 1120, line 9 .......................................................... Loss from Kentucky Form 4797, line 17 ........................................................................................ Safe harbor lease adjustments ..................................................................................................... 50% of the gross royalty income derived from any disposal of coal with a retained economic interest defined by IRC Section 631(c) and all IRC Section 272 expenses if the corporation elects not to use percentage depletion .......................................................... Kentucky special deduction from Schedule HH ........................................................................... Terminal Railroad Corporation adjustments ................................................................................ Kentucky allowable passive activity loss ..................................................................................... Kentucky allowable depletion ....................................................................................................... Kentucky contribution deductions ................................................................................................ Adjustments for qualified construction allowance(s) for short-term lease(s)............................. Federal taxable income of all exempt corporations .................................................................... Amounts received from Tobacco Master Settlement Agreement, Phase II Settlement ............ Amounts received from funds of the Commodity Credit Corporation for the Tobacco Loss Assistance Program............................................................................................................... Amounts received as a result of a tobacco quota buydown program ...................................... State Phase II payments received by a producer of tobacco or a tobacco quota owner ......... Other subtractions (attach explanation) ....................................................................................... Total of lines 1 through 17 (enter on Form 720, Part III, line 16)................................................. 1 2 3 4 00 00 00 00 5 6 7 8 9 10 11 12 13 00 00 00 00 00 00 00 00 00 14 15 16 17 18 00 00 00 00 00 41A720-O (11-10) Commonwealth of Kentucky DEPARTMENT OF REVENUE INSTRUCTIONS for SCHEDULE O-720 Page 2 OTHER ADDITIONS AND SUBTRACTIONS TO/FROM FEDERAL TAXABLE INCOME Schedule O-720 is to be used by a corporation filing Kentucky Form 720 to show other additions to and other subtractions from federal taxable income. PART I—ADDITIONS TO FEDERAL TAXABLE INCOME Line 1—Enter the Kentucky capital gain from Kentucky Schedule D, Line 14. If the capital gain from federal Schedule D, Line 14 is the same for both federal and Kentucky, do not make an entry on this line. Line 2—Enter the federal loss from federal Form 1120, Line 9. If the loss from Form 4797, Line 17 is the same for both federal and Kentucky, do not make an entry on this line. Line 3—Enter the Kentucky gain from Kentucky Form 4797, Line 17. If the gain from Form 4797, Line 17 is the same for both federal and Kentucky, do not make an entry on this line. Line 4—Enter the safe harbor lease adjustments equal to the excess of Kentucky income over federal income from all “finance lease property” as defined in the 1983 IRC Section 168(f)(8). Attach a schedule. KRS 141.010(12)(h) and 103 KAR 16:380. Line 5—Enter federal allowable depletion from federal Form 1120, Line 21. If the depletion is the same for both federal and Kentucky, do not make an entry on this line. To determine the allowable depletion deduction for Kentucky purposes, the percentage limitations provided by the IRC must be applied using Kentucky taxable income and deductions. Line 4—Enter the safe harbor lease adjustments equal to the excess of federal income over Kentucky income from all “finance lease property” as defined in the 1983 IRC Section 168(f)(8). Attach a schedule. KRS 141.010(12)(h) and 103 KAR 16:380. Line 5—Enter fifty percent (50%) of gross income derived from any disposal of coal covered by IRC Section 631(c) if the corporation does not claim any deduction for percentage depletion, or for expenditures attributable to the making and administering of the contract under which such disposition occurs or to the preservation of the economic interests retained under such contract. KRS 141.010(12)(d) Line 6—Enter the value of leasehold interest of property donated to a charitable organization which is to be used to provide living quarters for a homeless family. This deduction is a special deduction in addition to the ordinary charitable contribution deduction allowed by Chapter 1 of the IRC. However, in accordance with KRS 141.010(13)(d), the same item may not be deducted more than once. To claim this deduction, Schedule HH must be attached. KRS 141.0202 Line 7—Enter the terminal railroad corporation adjustments equal to the excess of federal income over Kentucky income of a “terminal railroad corporation” by ignoring the provisions of IRC Section 281 for Kentucky purposes. Attach a schedule. KRS 141.010(12)(g) Line 6—Enter the federal contribution deductions from federal Form 1120, Line 19. If the contribution deduction is the same for both federal and Kentucky, do not make an entry on this line. To determine the contribution deduction for Kentucky purposes, the percentage limitations provided by the IRC must be applied using Kentucky taxable income. Line 8—Enter the Kentucky allowable passive activity loss. The limitations of IRC Section 469 as they apply to personal service corporations and closely held C corporations are applicable for Kentucky income tax purposes. Attach Kentucky Form 8810 and applicable worksheets. Line 7—Enter the terminal railroad corporation adjustments equal to the excess of Kentucky income over federal income of a “terminal railroad corporation” by ignoring the provisions of IRC Section 281 for Kentucky purposes. Attach a schedule. KRS 141.010(12)(g) Line 9—Enter the Kentucky allowable depletion. If the depletion is the same for both federal and Kentucky, do not make an entry on this line. To determine the allowable depletion deduction for Kentucky purposes, the percentage limitations provided by the IRC must be applied using Kentucky taxable income and deductions. Line 8—Enter the federal allowable passive activity loss. The limitations of IRC Section 469 as they apply to personal service corporations and closely held C corporations are applicable for Kentucky income tax purposes. Attach federal Form 8810 and applicable worksheets. Line 9—Enter the federal taxable loss of all exempt corporations as provided by KRS 141.040(1)(a) to (i). Line 10—Enter the qualified lessee construction allowance adjustments equal to the excess of Kentucky income over federal income from “qualified lessee construction allowances for shortterm leases” by ignoring the provisions of IRC Section 110 for Kentucky purposes. Attach a schedule. KRS 141.010(12)(e) Line 11—Enter any other additions to federal income not reported on Lines 1 through 10, and attach an explanation of any other additions to the tax return. Kentucky has adopted the Internal Revenue Code in effect on December 31, 2006; include additions equal to the excess of Kentucky income over federal income resulting from amendments to the Internal Revenue Code subsequent to December 31, 2006. Line 12—Enter the total of Lines 1 through 11 (enter on Form 720, Part III, Line 9). PART II—SUBTRACTIONS FROM FEDERAL TAXABLE INCOME Line 1—Enter the federal capital gain from federal Form 1120, Line 8. If the capital gain is the same for both federal and Kentucky, do not make an entry on this line. Line 2—Enter the federal gain from federal Form 1120, Line 9. If the gain from Form 4797, Line 17 is the same for both federal and Kentucky, do not make an entry on this line. Line 3—Enter the Kentucky loss from Kentucky Form 4797, Line 17. If the loss from Form 4797, line 17 is the same for both federal and Kentucky, do not make an entry on this line. Line 10—Enter the Kentucky contribution deduction. If the contribution deduction is the same for both federal and Kentucky, do not make an entry on this line. To determine the contribution deduction for Kentucky purposes, the percentage limitations provided by the IRC must be applied using Kentucky taxable income. Line 11—Enter the qualified lessee construction allowance adjustments equal to the excess of federal income over Kentucky income from “qualified lessee construction allowances for shortterm leases” by ignoring the provisions of IRC Section 110 for Kentucky purposes. Attach a schedule. KRS 141.010(12)(e) Line 12—Enter the federal taxable income of all exempt corporations as provided by KRS 141.040(1)(a) to (i). Line 13—Enter the amounts received by a producer or a tobacco quota owner from the Tobacco Master Settlement Agreement. Line 14—Enter the amounts received from the Commodity Credit Corporation for the Tobacco Loss Assistance Program. Line 15—Enter the amounts received by a producer or a tobacco quota owner from the tobacco quota buydown program. Line 16—Enter the amounts received by a producer or a tobacco quota owner from state Phase II. Line 17—Enter any other subtractions from federal income not reported on Lines 1 through 16, and attach an explanation of any other subtractions to the tax return. Kentucky has adopted the Internal Revenue Code in effect on December 31, 2006; include subtractions equal to the excess of federal income over Kentucky income resulting from amendments to the Internal Revenue Code subsequent to December 31, 2006. Line 18—Enter the total of Lines 1 through 17 (enter on Form 720, Part III, Line 16).
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More about the Kentucky Schedule O-720 Corporate Income Tax
We last updated the Other Additions and Subtractions to/from Federal Taxable Income in August 2021, and the latest form we have available is for tax year 2020. This means that we don't yet have the updated form for the current tax year. Please check this page regularly, as we will post the updated form as soon as it is released by the Kentucky Department of Revenue. You can print other Kentucky tax forms here.
Related Kentucky Corporate Income Tax Forms:
TaxFormFinder has an additional 129 Kentucky income tax forms that you may need, plus all federal income tax forms. These related forms may also be needed with the Kentucky Schedule O-720.
| Form Code | Form Name |
|---|---|
| Schedule O-PTE | Other Additions and Subtractions to/from Federal Ordinary Income |
View all 130 Kentucky Income Tax Forms
Form Sources:
Kentucky usually releases forms for the current tax year between January and April. We last updated Kentucky Schedule O-720 from the Department of Revenue in August 2021.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of Kentucky Schedule O-720
We have a total of eight past-year versions of Schedule O-720 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
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