What Is the Kansas Expensing Deduction?

Kansas Tax Deductions

The Kansas expensing deduction provides a deduction for depreciation expenses associated with assets placed into service in Kansas during the current tax year. Two ways exist to generate the deduction in Drake Tax.

Itemized Deductions

Taxpayers should keep receipts and documentation of expenses related to itemized deductions such as medical expenses, adoption costs, building accessibility costs, and charitable donations.

  • Medical expenses exceeding 7.5% of federal adjusted gross income.
  • Certain costs associated with adoption.
  • Building accessibility costs for taxpayers or family members with disabilities.
  • Charitable donations up to 50% of gross income.

Kansas EITC and Taxes

Married couples filing jointly with two eligible children can deduct for the Kansas EITC. Tax rates for Kansas income taxes range from 3.1% to 5.7%. No local payroll taxes exist.

Kansas Expensing and Recapture

Kansas allows an expensing deduction for certain assets placed into service starting in 2012. Recapture may occur if items move out of state or are sold.

Form K-120EX and Tax Compliances

The statement contains the information needed to complete Form K-120EX for the partnership. Kansas net income and net operating loss deduction must also be included in the tax return.

Legal and Financial Regulations in Kansas

Kansas laws protect individuals from debt collection activities. The state is almost completely surrounded by other states where marijuana can be used medically or recreationally. Kansas is a constitutional carry state.

Kansas Form Filings

The KS120EX provides a deduction for the depreciation expense associated with an asset placed into service in Kansas during the current tax year. Form K-120ES for corporations and K-40ES for personal filers are also required for estimated tax payments.

Election Filing in Kansas

For an entity currently doing business in Kansas, the election must be filed on or before the last day of the tax year immediately preceding the tax year for which the election is made. Form K-120EL must be sent separately from the K-120S return.

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