General Information For Form K-139 printable pdf download

GENERAL INFORMATION FOR FORM K-139

KANSAS NET OPERATING LOSSES

If any portion of a net operating loss described in

paragraphs 1 and 2 to the left is not utilized prior to the final

For net operating losses incurred in taxable years

year of the carry forward period provided in paragraph 1, a

beginning after December 31, 1987, a net operating loss

refund shall be allowable in such final year in an amount equal

deduction shall be allowed in the same manner that it is

to the refund which would have been allowable in the taxable

allowed under the federal internal revenue code except that

year the loss incurred by utilizing the three year carry back

such net operating loss may only be carried forward to each

provided under K.S.A. 79-32,143, as in effect on December

of the 10 taxable years following the taxable year of the net

31, 1987, multiplied by a fraction, the numerator of which is

operating loss. The amount of the net operating loss that

the unused portion of such net operating loss in the final year,

may be carried forward for Kansas income tax purposes

and the denominator of which is the amount of such net

shall be that portion of the federal net operating loss allocated

operating loss which could have been carried back to the

to Kansas under this act in the taxable year that the net

three years immediately preceding the year in which the loss

operating loss is sustained.

was incurred. In no event may such fraction exceed 1. Use

the space below to perform this calculation if necessary.

The amount of the loss to be carried forward will be the

federal net operating loss after (1) all modifications required

KANSAS CAPITAL LOSS CARRY BACKS

under this act applicable to the net loss in the year the loss

Kansas law does not provide for a capital loss carry back;

was incurred; and (2) after apportionment as to source in

however, Kansas does allow federal adjustments to arrive at

the case of corporations in the same manner that income

adjusted Kansas taxable income and one of those

for such corporations is required to be apportioned.

adjustments would be a federal capital loss carry back.

If a net operating loss was incurred in a taxable year

Therefore, Kansas would allow the capital loss carry back at

beginning prior to January 1, 1988, the amount of the net

the federal level to arrive at adjusted federal taxable income.

operating loss that may be carried back and carried forward

This method is different than the Kansas net operating loss

and the period for which it may be carried back and carried

carry back which is computed separately for Kansas. You

forward shall be determined under the provisions of the

should compute the capital loss carry back on Form K-120

Kansas income tax laws which were in effect during the

for Kansas and enclose any federal schedule that is applicable.

year that such net operating loss was incurred.

Use the following space to calculate the ratio for net operating loss carry back.

(Enclose additional sheets if necessary.)

General Information For Form K-139

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