Schedule NOL: Net Operating Loss Schedule (2024)
Kentucky · Kentucky DOR · Used for tax years 2024
Kentucky Schedule NOL is attached to Form 720 to calculate a corporation’s net operating loss deduction and track available loss carryforwards. It separately reports pre-2018 and post-2017 losses and calculates the amounts carried forward to 2025.
Who files this form
Kentucky Schedule NOL is used by corporations filing separate returns or elective consolidated returns to calculate their net operating loss (NOL) deduction and track available NOL carryforwards.
Companies filing unitary combined returns should not use this schedule. Those groups should use Form 720U, Schedule U10, instead.
What you'll need
Have these forms and details available to complete Schedule NOL:
- Form 720, Part I, line 41, showing taxable net income or the current-year loss.
- The corporation’s name, Kentucky Corporation/LLET account number, and federal identification number.
- For an elective consolidated return, the common parent’s name and account number, plus names and account numbers for applicable subsidiaries.
- Prior-year NOL carryforward amounts, separated into pre-2018 and post-2017 losses, and any adjustments.
- For pre-apportioned losses from years when a group filed a mandatory nexus consolidated return, the nexus group’s apportionment factor for the year each loss was generated.
How to file
Attach the completed 2024 Schedule NOL to Form 720.
- Use Section A to calculate the NOL deduction. Enter the total from Section A, line 10, on Form 720, Part I, line 42.
- If Form 720, Part I, line 41, shows a current-year loss, skip to Section B and enter the loss on line 5 as a positive amount.
- Use Section B to calculate the pre-2018 and post-2017 NOL carryforwards to 2025.
The supplied text does not provide a mailing address or e-filing directions.
Common mistakes
- Using the wrong schedule: Unitary combined return filers should use Form 720U, Schedule U10, not Schedule NOL.
- Claiming a carryforward without Kentucky nexus: A corporation has no NOL carryforward if it did not have Kentucky nexus during the loss year.
- Entering a current-year loss as a negative number: If there is a current-year NOL, skip to Section B and enter it on line 5 as a positive amount.
- Carrying a loss back: NOLs must not be carried back for tax years beginning on or after January 1, 2005.
Questions people ask
How long can a pre-2018 NOL be carried forward?
An NOL from a taxable year beginning before January 1, 2018, may be carried forward for 20 years following the loss year.
How much post-2017 NOL can I deduct?
For the 2024 schedule, first subtract the pre-2018 NOL deduction from taxable net income. The post-2017 deduction is the lesser of 80% of that remaining income or the available post-2017 NOL carryforward. Unused post-2017 amounts carry forward indefinitely.
Are Kentucky NOLs calculated before or after apportionment?
Kentucky NOLs are calculated after apportionment for all filers. Pre-apportioned carryforwards from mandatory nexus consolidated return years must be apportioned using the nexus group’s apportionment factor for the year the loss was generated.
Where does the total NOL deduction go?
Enter the total on Schedule NOL, Section A, line 10, and on Form 720, Part I, line 42.