Kansas Net Operating Loss Carry Forward (OBSOLETE FORM)

Net Operating Loss Carry Forward (OBSOLETE FORM)
CRF Net Operating Loss Carry Forward (Rev. 8-12)
SCHEDULE I
KANSAS COMPUTATION SCHEDULE

(B)

(C)

(D)

(E)

(G)

(H)

(J)

j. NOL carried to 10th succeeding year (Net operating loss cannot be carried over beyond the 10th year) ..................................................................................................................................

i. NOL carried to 9th succeeding year ........................................................................................................................................................................................................................

h. NOL carried to 8th succeeding year ..................................................................................................................................................................................................

g. NOL carried to 7th succeeding year ...........................................................................................................................................................................

f. NOL carried to 6th succeeding year ......................................................................................................................................................

(F)

Carry Forward Year(s)
(I)

(K)

Tax Preparer Phone No. _________________________________________

Tax Preparer Name _____________________________________________

Taxpayer Social Security No. _____________________________________

Taxpayer Name ________________________________________________

SCHEDULE II
KANSAS DISTRIBUTION SCHEDULE

e. NOL carried to 5th succeeding year .................................................................................................................................

d. NOL carried to 4th succeeding year .........................................................................................................

c. NOL carried to 3rd succeeding year ....................................................................................

b. NOL carried to 2nd succeeding year .............................................................

a. NOL carried to 1st succeeding year ........................................

16. Net operating loss carry forward:

15. Modified taxable income ...............................................................

14. Net operating loss ...................................................

c. __________________________ ......................

b. _________ Loss year utilized ...........................

a. Charitable contributions .....................................

13. Other adjustments:

12. Excess nonbusiness deductions ............................

11. Exemptions .............................................................

10. Nontaxable capital gain ..........................................

9. Net capital loss .......................................................

8. Net operating loss included in line 3 ......................

7. Taxable income per Kansas return .........................

6. Total deductions ......................................................

5. Less personal exemption .......................................

4. Less standard or itemized deductions ....................

3. Kansas adjusted gross income ..............................

2. Modifications ...........................................................

(A)

Loss Year

NET OPERATING LOSS CARRY FORWARD FORM

KANSAS

1. Federal adjusted gross income ..............................

(Rev. 8/12)

CRF

SCHEDULE III

KANSAS ALLOCATION SCHEDULE

Complete this schedule only if any one of the years involved was filed with a different filing status than any other year. You must complete this
schedule for EACH YEAR that an allocation is necessary (see instructions).
(L)

Year: _________

17. Wages, salaries, tips, etc. .............................................................................


18. Interest ...........................................................................................................


19. Dividends less exclusion ...............................................................................


20. Business income ...........................................................................................


21. Taxable capital gains and losses ...................................................................


22. Rents, royalties and partnerships .................................................................


23. Farm income ..................................................................................................


24. Other income .................................................................................................


25. Other adjustments: ___________________________________________

26.

___________________________________________

27. Federal adjusted gross income (Add lines 17 through 26) ...........................


28. Modifications from Part A, Schedule S ..........................................................


29. Additions:

________________________________________________

30.

________________________________________________

31. Subtractions: ________________________________________________

32.

________________________________________________

33. Net Modifications (Add lines 29 and 30, then subtract lines 31 and 32) .......


34. Kansas adjusted gross income .....................................................................


35. Less standard or itemized deductions ..........................................................


36. Less exemptions ...........................................................................................


37. Taxable income (Line 34 minus lines 35 and 36) ...........................................


Joint Income:

(M)
Taxpayer SSN:
___-__-____
Taxpayer Income:

(N)
Spouse SSN:
___-__-____
Spouse Income:

INSTRUCTIONS FOR FORM CRF

GENERAL INFORMATION
To qualify for a Kansas net operating loss carry
forward, a taxpayer must have all of the following: 1) a
federal net operating loss; 2) a Kansas Individual Income
Tax Return, Form K-40, and supporting schedules on file
for the loss year; and, 3) income or loss from Kansas
sources or was a Kansas resident during the loss year.
Kansas statutes require net operating losses
which are incurred after December 31, 1987, be
carried forward until fully used or until ten (10)
years has elapsed, whichever occurs first. A Kansas
net operating loss which is incurred after December 31,
1987 is not carried back prior to carrying the loss forward.
For loss years prior to 1988, the loss carryover is limited
to seven (7) years.
NONRESIDENTS: A nonresident must determine his net
operating loss as though he were a Kansas resident.
The loss is determined from information on Form K-40
and is applied to income in the same manner as a resident
of Kansas would claim the loss carry forward. The
information shown on the Kansas nonresident allocation
percentage schedule is not used to determine a Kansas
net operating loss. Kansas source loss is not applied to
Kansas source income when determining a Kansas
nonresident net operating loss.
If there was a change in marital status (divorce,
marriage, or death of one of the spouses) between the
year of the loss and any of the years to which the loss is
carried, see the instructions for Schedule III.
There are three basic steps involved in a net operating
loss carry forward:
STEP 1: Complete Schedule I to compute the amount
of the loss.
STEP 2: Carry the loss to the next succeeding tax year
(Schedule S, Part A)
STEP 3: Complete Schedule II to determine if there is
any remaining loss to be carried to the next carried to
the next succeeding year.
STEP 4: Complete a separate CRF for each loss year.
LINE BY LINE INSTRUCTIONS
SCHEDULE I – KANSAS COMPUTATION SCHEDULE

COLUMN (A) – Loss Year
Lines 1 through 6: The information to be entered on
these lines is taken from the front of the completed
Kansas Income Tax Return, Form K-40.
Line 7: Enter the Kansas taxable income from the loss
year. This amount will be a negative figure.
Line 8: If you have any prior year net operating loss
included in the adjusted gross income, enter this
amount on line 8. Because you are reducing the
allowable loss shown on line 7 by the amounts shown
on succeeding lines, the amount entered will be a
positive figure.

Line 9: Enter the same capital loss that was computed
on your federal net operating loss claim as a positive
figure.
Line 10: Enter the portion of the federal long term capital
gains excluded from income.
Line 11: Enter the personal exemption claimed on the
Kansas return.
Line 12: Enclose a schedule showing the computation
of the nonbusiness deductions in excess of
nonbusiness income for Kansas and enter the result
on line 12. The method of computing the
nonbusiness deductions in excess of nonbusiness
income is the same as that used for federal purposes.
However, the total amount may differ because income
(from Schedule S, Part A) and Kansas itemized
deductions must be taken into consideration for the
Kansas computation.
Line 13: Do not make an entry on lines 13a, 13b and
13c in the loss year column.
Line 14: Reduce the loss shown on line 7 by the total of
lines 8 through 12. If the result is a negative figure,
this will be your Kansas net operating loss. Carry the
net operating loss from line 14 to the next succeeding
tax year, Schedule S, Part A.
SCHEDULE II – KANSAS DISTRIBUTION SCHEDULE

Schedule II is used to determine the amount of loss
that is absorbed and the remainder of the loss to be
carried to the next succeeding year. The computations
for Schedule II are essentially the same as those for
Schedule I with a few exceptions.
COLUMNS (B) through (K) – Carry Forward Years
Lines 1 through 11: Enter the requested information
from Form K-40, for the applicable year. For line 8,
the Kansas net operating loss included in line 3 will
need to be added.
Line 12: The excess nonbusiness deductions are not
added back. Line 12 is left blank for all years except
the loss year.
Line 13a: If the allowable portion of the charitable
contributions shown on the federal itemized
deductions have increased, show the same
adjustment as shown on the federal net operating
loss claim on line 13a.
Line 13b: Enter the loss year that is being utilized (in
case of multiple loss years), then enter amounts from
that loss year.
Line 13c: If you are utilizing more than one loss year,
enter the year(s) and amounts from the additional
loss year(s).
Line 14: Enter an amount for the loss year only.
Line 15: Add amounts on lines 7 through 13 to determine
the modified taxable income and enter the result on
line 15 (cannot be less than zero). NOTE: Line 7 may

be either a positive or negative amount, while lines 8
through 13 are usually positive amounts.
Line 16: This is the unused portion of the net operating
loss. Column B – If the loss exceeds modified taxable
income, show the difference on line 16b. Column C
– If the loss exceeds modified taxable income, show
the difference on line 16c. Column D – If the loss
exceeds modified taxable income, show the
difference on line 16d.
Continue these line instructions for each column until
the net operating loss is completely used or until it is
carried forward 10 taxable years, whichever occurs first.
SCHEDULE III – KANSAS ALLOCATION SCHEDULE

This schedule is used when there is a change in marital
status between the year of the loss and any of the years
to which the loss is to be carried. The net operating loss
of one spouse cannot be applied to the income of the
other spouse; therefore, it is necessary to determine what
portion of the jointly filed return applies to the spouse
who sustained the loss.
Column L – Joint Income
Lines 17 through 37: Enter the information requested
which is obtained from the joint federal and Kansas
income tax returns.
Column M – Taxpayer SSN and Income
Lines 17 through 37: Enter the Social Security Number
and the income, adjustments and deductions for the
taxpayer who is claiming the loss carry forward.
Column N – Spouse SSN and Income
Lines 17 through 37: Enter the Social Security Number
and the income, adjustments and deductions for the
spouse.
If Schedule III is used for the loss year and both spouses
sustained a loss, the information in Column M will need

to be carried to Schedule I of Form CRF to calculate the
loss. However, if only one spouse sustained the loss, while
the other spouse had income, use the information in
Column L to calculate the loss on Schedule I.
When Schedule III is used for the year to which a loss
is carried, the information shown in Column M will be used
to complete Schedule II of Form CRF to determine the
income absorbed and the amount of remaining loss. The
Kansas loss to be claimed on Schedule S, Part A, Line
A12, cannot exceed the net income for the spouse who
sustained the loss since the loss of one spouse cannot
be applied to the income of the other spouse.
To avoid a delay in processing or denial of the loss,
enclose the following with your Kansas Individual Income
Tax Return, Form K-40.
•	 The completed CRF form. (You must submit a
separate CRF for each loss year the net
operating loss carry forward is applied.)
•	 A copy of Federal Form 1045, Application for

Tentative Refund.

•	 A copy of Federal Schedule A, Itemized
Deductions and Interest and Dividend Income.
TAXPAYER ASSISTANCE
For assistance in completing Form CRF, contact
taxpayer assistance:
Kansas Department of Revenue

Docking State Office Building, 1st Floor

915 SW Harrison St.

Topeka, KS 66625-2007

Phone: (785) 368-8222

Fax: (785) 291-3614

Additional copies of this credit schedule and other tax
forms are available from our web site at: ksrevenue.org