Kentucky Net Operating Loss Schedule

Net Operating Loss Schedule
Schedule NOL Form 720
SCHEDULE

NOL

NET OPERATING LOSS SCHEDULE

Commonwealth of Kentucky
Department of Revenue

2023

  Attach to Form 720.
Federal Identification Number

Kentucky Corporation/LLET
Account Number

__ __ – __ __ __ __ __ __ __

__ __ __ __ __ __

	 Name of Corporation

Prior Year NOL

	Section A—Net Operating Loss Deduction
	

Name

1	

Corporation Filing Return

2	

Subsidiaries (if applicable)

A	B
Kentucky
Corporation/LLET
Account Number

Pre-2018 NOL
Carryforward

Post-2017 NOL
Carryforward

	a
	b
	c
	d
	e
	f
	g
	h
	i
3	

Adjustments (Intercompany eliminations and others)...............................................	3		

4	

Totals (sum each respective column).................................................................................. 	4		

5	

Enter the taxable net income from Form 720, Part I, line 41. (If a loss, skip to Section B)............................... 	5	

6	

Enter the lesser of line 5 or Column A, line 4. This is the pre-2018 NOLD........................................................ 	

7	

Line 5 less line 6. If negative, enter zero. This is the taxable income remaining after pre-2018 NOLD........... 	7	

8	

Multiply line 7 by 80%. This is the maximum allowable post-2017 NOLD.............................................................. 	8

9	

Enter the lesser of line 8 or Column B, line 4. This is the post-2017 NOLD...................................................................	

6	

9	

10	 Add lines 6 and 9. This is the total NOLD. Enter here and on Form 720, Part I, line 42.................................. 	10	
Section B—NOL Carryforward
1	

Enter the amount from Section A, Column A, line 4.......................................................................................... 	 1	

2	

Enter the amount from Section A, line 6........................................................................................................... 	 2	

3	

Subtract line 2 from line 1. This is the pre-2018 NOL carryforward to 2024.................................................. 	 3	

4	

Enter the amount from Section A, Column B, line 4......................................................................................... 	4	

5	

Enter the amount of current year loss from Form 720, Part I, line 41 (enter as a positive).............................. 	5	

6	

Enter the amount from Section A, line 9........................................................................................................... 	6	

7	

Line 4 plus line 5 less line 6. This is the post-2017 NOL carryforward to 2024............................................ 	7	

230217 41A720NOL (10-23)	

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SCHEDULE NOL
(2023)

INSTRUCTIONS FOR SCHEDULE NOL

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Purpose of Schedule—This schedule is used by separate
return and elective consolidated return filers per KRS
141.201(3)(b) or 141.201(3)(a)2 to determine the net operating
loss deduction and to track any available net operating loss
carryforward.

Line 3—Enter any adjustments to the amounts entered in
Column A and Column B.

NOTE: Companies filing unitary combined returns
should not use this schedule. These groups should use
Form 720U, Schedule U10, to calculate NOL deductions
and carryforwards.

Line 5—Enter the taxable net income from Form 720, Part I,
Line 41. If there is a current-year net operating loss, skip to
Section B and enter the current-year NOL on Section B, Line
5 as a positive amount.

General Instructions—Kentucky NOLs are calculated on
a post-apportionment basis for all filers. Consequently, preapportioned NOL carryforward amounts from years in which
a group filed a mandatory nexus consolidated return must be
apportioned using the nexus group’s apportionment factor in
the year the NOL was generated. For more information and
examples relating to the conversion from pre-apportioned to
apportioned amounts, see 103 KAR 16:250.

Line 6—Enter the lesser of Line 5 or Column A, Line 4. This is
the amount of pre-2018 NOL utilized this tax year.

A corporation does not have an NOL carryforward if it did
not have Kentucky nexus during the tax year of the NOL. An
NOL generated for a taxable year beginning before January
1, 2018 (pre-2018 NOL), may be carried forward 20 years
following the loss year; however, per KRS 141.011(2), an NOL
must not be carried back for tax years beginning on or after
January 1, 2005.
NOL generated after December 31, 2017 (post-2017 NOL),
may only offset up to 80% of taxable income, but any unused
amounts are carried forward indefinitely.
Section A—Net Operating Loss Deduction
Line 1—Enter the name and Kentucky Corporation/LLET
account number for the corporation filing the return. If this is
an elective consolidated return, this should be the name of
the common parent.
Line 2 (a) – (i)—Enter the name and Kentucky Corporation/
LLET account number of any subsidiary(ies).
Column A—Enter the NOL carryforward amounts from tax
years beginning before January 1, 2018 (pre-2018 NOL).
Column B—Enter the NOL carryforward amounts from tax
years beginning after December 31, 2017 (post-2017 NOL).

41A720NOL (10-23)

Line 4—Calculate the total for each column.

Line 7—Subtract Line 6 from Line 5. If negative, enter zero.
This is the amount of taxable income remaining after utilizing
the available pre-2018 NOL.
Line 8—Multiply the amount on Line 7 by 80%. This is the
maximum amount of post-2017 NOL that can be utilized this
tax year.
Line 9—Enter the lesser of Line 8 or Column B, Line 4. This is
the amount of post-2017 NOL utilized this tax year.
Line 10—Add Lines 6 and 9. This is the total NOL deduction
utilized this tax year. Enter here and on Form 720, Part I, Line
42.
Section B—NOL Carryforward
Line 1—Enter the amount from Section A, Column A, Line 4.
Line 2—Enter the amount from Section A, Line 6.
Line 3—Subtract Line 2 from Line 1. This is the pre-2018
NOL carryforward to 2024.
Line 4—Enter the amount from Section A, Column B, Line 4.
Line 5—Enter the amount of the current-year loss from Form
720, Part I, Line 41 as a positive number.
Line 6—Enter the amount from Section A, Line 9.
Line 7—Line 4 plus Line 5 less Line 6. This is the post-2017
NOL carryforward to 2024.