Screen KYNOL-2 - Kentucky Net Operating Loss Carryovers (1040)

Overview

The information in the
KYNOL-2
screen is used to calculate the Kentucky prior year NOL carryforward amount for the current year Form 740, Schedule M, Other Subtractions. It is also used to calculate Kentucky Net Operating Loss Schedule (Schedule KNOL) and the Kentucky NOL Carryover Worksheet. Data from the Carryover Worksheet proformas to the following year's screen KYNOL-2; after the initial year's data entry, minimal modifications should be required.

20-year carryovers

Use these fields to enter net operating loss (NOL) carryover items from 2017 and earlier (pre-Tax Cuts and Jobs Act). New filers and filers claiming a Kentucky NOL for the 1st time should enter NOLs generated as positive numbers and NOLs utilized as negative numbers. Enter carrybacks as reductions of loss in the year the loss was created. When you proforma to the following year, these fields will be updated based on the Kentucky NOL Carryover Worksheet.

Indefinite carryovers

This field shows the filer's net post-2017 net operating loss. New filers and first-time Kentucky NOL claimants should enter their unused post-2017 NOL amount in this field. When you proforma to the following year, this field will be updated based on the Kentucky NOL Carryover Worksheet.

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