Schedule CR: Pro Forma Federal Consolidated Return Schedule (Revision 2025-10)
Kentucky · Kentucky DOR · Used for tax years 2025
Kentucky Schedule CR computes federal consolidated net income for 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, and is att
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
- All applicable schedules, which must be attached to Schedule CR.
- 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, plus adjustments and intercompany eliminations.
- Form 1120 instructions for lines 1–10 and 12–26, which Schedule CR directs you to use.
- Form 4797 information for net gain or loss on line 9, and Form 4562 information for depreciation on line 20, if applicable.
- 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 to Schedule CR.
If the affiliated group has more than two subsidiaries, use the page 2 Continuation Sheet.
Common mistakes
- Leaving off applicable schedules. The form reminds you to attach all applicable schedules.
- Using a six-digit account number without leading zeros. The Kentucky Corporation/LLET Account Number must be nine digits. Add leading zeros if it has six digits.
- Handling adjustments or eliminations incorrectly. To calculate consolidated totals, add the parent’s and all subsidiaries’ amounts, then subtract adjustments and intercompany eliminations. Negative adjustments or eliminations increase the consolidated totals; otherwise, they reduce the totals.
Questions people ask
What does Schedule CR calculate?
It calculates federal consolidated net income for an affiliated group filing an elective consolidated Kentucky tax return.
What if the group has more than two subsidiaries?
Use the page 2 Continuation Sheet.
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.
Which depreciation belongs on line 20?
Line 20 is for depreciation from Form 4562 that has not been claimed on Schedule A or elsewhere on the return.
Where do adjustments and intercompany eliminations go?
Enter them in their respective columns for each income line, lines 1–10, and deduction line, lines 12–26. Enter the consolidated total in its column.