Schedule CR: Pro Forma Federal Consolidated Return Schedule (Revision 2024-10)
Kentucky · Kentucky DOR · Used for tax years 2024
Kentucky Schedule CR computes the federal consolidated net income of an affiliated group filing an elective consolidated Kentucky tax return. It reports income and deductions for the parent and subsidiaries, adjustments, intercompany eliminations, and consolidated totals.
Who files this form
An affiliated group filing an elective consolidated Kentucky tax return under KRS 141.201 must complete Schedule CR to compute its federal consolidated net income.
Schedule CR must be attached to Form 720, Kentucky Corporation Income Tax and LLET Return.
What you'll need
Have the following ready:
- Form 720, which must include Schedule CR as an attachment.
- Each subsidiary’s name, federal employer identification number (FEIN), and Kentucky Corporation/LLET Account Number, if applicable.
- Federal income and deduction amounts for the parent and each subsidiary, along with adjustments and intercompany eliminations.
- The Form 1120 instructions for lines 1 through 10 and 12 through 26.
- All applicable schedules, which the form says to attach.
Use the page 2 Continuation Sheet if the group has more than two subsidiaries.
How to file
Attach Schedule CR to Form 720, Kentucky Corporation Income Tax and LLET Return, filed with the Kentucky Department of Revenue. Attach all applicable schedules.
The supplied text does not give a mailing address or e-filing instructions.
Common mistakes
- Forgetting attachments: The form reminds filers to attach all applicable schedules.
- Using the wrong sign for adjustments or eliminations: The note says to add the amounts for the parent and all subsidiaries, then subtract all adjustments and intercompany eliminations. Negative adjustments or intercompany eliminations increase consolidated totals. Otherwise, they reduce consolidated totals.
Questions people ask
What is Schedule CR used for?
It computes the federal consolidated net income of an affiliated group filing an elective consolidated Kentucky tax return.
When do I need the Continuation Sheet?
Use the page 2 Continuation Sheet when the affiliated group has more than two subsidiaries.
What information do I enter for each subsidiary?
Enter its name, FEIN, and Kentucky Corporation/LLET Account Number, if applicable.
Which instructions should I use for income and deductions?
For Schedule CR lines 1 through 10, use the Form 1120 instructions for lines 1 through 10. For Schedule CR lines 12 through 26, use the Form 1120 instructions for lines 12 through 26.
How do I calculate line 28?
For each column, subtract line 27, total deductions, from line 11, total income. Line 28 shows taxable income before the NOL deduction and special deductions.