SCHEDULE O-720 - Other Additions and Subtractions - Part I and Part II - Instructions

Sep 19, 2026

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Schedule O-720 provides a structured way for a corporation filing Kentucky Form 720 to report other additions to and other subtractions from federal taxable income. The document includes Part I for additions and Part II for subtractions, with line-by-line references to Kentucky and federal forms. It also contains instructions explaining what to enter on each line, including when entries should be omitted, such as when figures match the federal amounts.

LanguageEnglish

CategoryForms

FormatPDF

Pages3

Reading Time1 min

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PART I—ADDITIONS TO FEDERAL TAXABLE INCOME (FORM 720, PART III, LINE 9)

Line-by-line addition items and totals

PART II—SUBTRACTIONS FROM FEDERAL TAXABLE INCOME (FORM 720, PART III, LINE 16)

Line-by-line subtraction items and totals

INSTRUCTIONS for SCHEDULE O-720

Purpose of Schedule O-720

Part I line instructions

SCHEDULE O-720 41A720-O (12-14) Commonwealth of Kentucky DEPARTMENT OF REVENUE ➤ See instructions. ➤ Attach to Form 720. *1400030300* Taxable Year Ending / Mo. Yr. OTHER ADDITIONSAND SUBTRACTIONSTO/FROM FEDERAL TAXABLE INCOME | Name of Corporation | Federal Identification Number
— | Kentucky Corporation/LLET Account Number | | | | | --- | --- | --- | --- | --- | --- | | PART I—ADDITIONS TO FEDERAL TAXABLE INCOME (FORM 720, PART III, LINE 9) | | | | | | | 1. Kentucky capital gain from Kentucky Schedule D, line 18 ..........................................................
2. Loss from Form 4797 found on federal Form 1120, line 9
3. Gain from Kentucky Form 4797, line 17 ........................................................................................
4. Safe harbor lease adjustments .....................................................................................................
5. Federal allowable depletion from Form 1120, line 21 .................................................................
6. Federal contribution deductions from Form 1120, line 19
7. Terminal Railroad Corporation adjustments................................................................................
8. Federal allowable passive activity loss ........................................................................................
9. Federal taxable loss of all exempt corporations .........................................................................
10. Adjustments for qualified construction allowance(s) for short-term lease(s).............................
11. Enter additions to federal taxable income from Kentucky Schedule(s) K-1
12. Internal Revenue Code amendments made after December 31, 2013
13. Other additions (attach explanation)
14. Total of lines 1 through 13 (enter on Form 720, Part III, line 9) ................................................... | | | 1 | | 00 | | | | | 2 | | 00 | | | | | 3 | | 00 | | | | | 4 | | 00 | | | | | 5 | | 00 | | | | | 6 | | 00 | | | | | 7 | | 00 | | | | | 8 | | 00 | | | | | 9 | | 00 | | | | | 10 | | 00 | | | | | 11 | | 00 | | | | | 12 | | 00 | | | | | 13 | | 00 | | | | | 14 | | 00 | | PART II—SUBTRACTIONS FROM FEDERAL TAXABLE INCOME (FORM 720, PART III, LINE 16) | | | | | | | 1. Capital gain from Form 1120, line 8 ..............................................................................................
2. Gain from Form 4797 found on federal Form 1120, line 9
3. Loss from Kentucky Form 4797, line 17 ........................................................................................
4. Safe harbor lease adjustments .....................................................................................................
5. 50% of the gross royalty income derived from any disposal of coal with a retained economic interest defined by IRC Section 631(c) and all IRC Section 272 expenses
if the corporation elects not to use percentage depletion..........................................................
6. Kentucky special deduction from Schedule HH ...........................................................................
7. Terminal Railroad Corporation adjustments................................................................................
8. Kentucky allowable passive activity loss .....................................................................................
9. Kentucky allowable depletion .......................................................................................................
10. Kentucky contribution deductions ................................................................................................
11. Adjustments for qualified construction allowance(s) for short-term lease(s).............................
12. Federal taxable income of all exempt corporations............

FAQs

What is Schedule O-720 used for in relation to Kentucky Form 720?

Schedule O-720 is used by a corporation filing Kentucky Form 720 to report other additions and other subtractions from federal taxable income.

How do Part I and Part II differ on Schedule O-720?

Part I lists additions to federal taxable income, while Part II lists subtractions from federal taxable income. Each part uses its own referenced lines on Form 720.

When should a corporation leave a line blank for Kentucky capital gain?

For Line 1, if the capital gain amount from federal Schedule D, Line 18 is the same for both federal and Kentucky, the document instructs not to make an entry on this line.

Sep 19, 2026

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