Fillable Form K-120ex - Kansas Expensing Deduction Schedule

LINE 5 – Multiply line 3 by line 4 and enter the result. If line 3 is a negative

Column (e) – Enter any bonus depreciation received.

figure, shade the minus (-) sign in the box to the left to indicate a

Column (f) – Subtract the bonus depreciation in column (e) from the basis

negative number.

for depreciation in column (d) and enter the result.

K-40 and K-41 filers STOP HERE. If the amount on line 5 is a positive

Column (g) – Multiply the factor in column (c) by the net basis in column

figure (the expense on line 1 is more than the recapture on line 2), enter

(f) and enter the result. For instance, for a 3 year recover period that

was a 200% DB, enter 0.075 in column (c) and assuming column (f) is

it as a subtraction modification on Schedule S, line A18 or Form K-41,

line 26d. If the amount on line 5 is a negative figure (the recapture on

100, the result to enter in column (g) is 7.50.

line 2 is more than the expense on line 1), enter it as an addition

LINE 11 – Add all amounts in column (g) and enter the result on line 11 and

modification on Schedule S, line A5 or Form K-41, line 25d.

line 1, PART A of this schedule.

K-120 and K-121 filers with a positive figure on line 5, proceed to line 6.

PART C – RECAPTURE OF EXPENSING DEDUCTIONS PREVIOUSLY CLAIMED

If the amount on line 5 is a negative figure (the recapture on line 2 was

more than the expense on line 1) then STOP HERE and enter the amount

The following instructions reference the information used in the

from line 5 as a positive figure on line 17 of Form K-120 or Form K-121.

“example” on the previous page.

LINE 6 – Enter the Kansas net income for this entity from either Form

If property that was previously expensed was sold or moved out of

K-120 or Form K-121, as applicable. This amount is determined by adding

Kansas within the "recover period," the expensing deduction previously

line 15 and line 16 together on Form K-120 or K-121.

determined is subject to recapture and treated as Kansas taxable income

allocated to Kansas. If more space is needed, enclose a separate schedule.

LINE 7 – Subtract line 6 from line 5 and enter result (cannot be less

than zero).

Column (a) – Enter the recover period. It should be the same recover

LINE 8 – If the entity is filing a combined return, they may elect to take

period that was claimed on the initial expense deduction for this

an expensing deduction against the income of any member of the combined

asset(s). In our example 5 years was used.

group. If they make this election, enter the information requested on line 8,

Column (b) – Enter the ending period of the tax year that the asset(s)

columns (a), (b) and (c). If more space is needed, enclose a separate

was claimed as an expense deduction. Example: 2013.

schedule. Enter the sum of column (c) on line 8.

Column (c) – Enter the ending period of the current year tax return.

LINE 9 – Add line 8 to the lesser of line 5 or line 6. Enter the result on

Example: 2015

Form K-120 or K-121, line 17. If filing combined, each entity using the

Column (d) – Compute the recapture factor by subtracting the year placed

deduction should record their amount used on line 17 of the K-121. The

in service (b) from the current year (c) and enter the result in (d):

total column of K-121, line 17 should equal the amount on line 9.

Example: 2015 - 2013 = 2.

LINE 10 – Subtract line 8 from line 7. This is the amount of net operating

Column (e) – Compute the years remaining by subtracting the recapture

loss (NOL) remaining for carry forward to next year's return. The NOL

factor (d) from the recover period (a) and enter the result in (e). Example:

may only be used by the entity that claimed the initial expensing deduction.

Subtracting the recapture factor of 2 from the recover period of 5

It may not be used by any of the other entities in a combined group.

equals 3.

PART B – COMPUTATION OF KANSAS EXPENSING

Column (f) – Divide the years remaining (e) by the recover factor (a) and

enter the resulting percentage in (f). Example: Dividing the years

Complete PART B for the type of Kansas property you are electing to

remaining of 3 by the recover period of 5 equals the percent of

expense and enclose Federal Form 4562 with this schedule to support

recapture of 60%.

your claim. If more space is needed, enclose a separate schedule.

Column (g) – Enter the Kansas expensing previously allowed. In our

Column (a) – Using the following table, enter the recover period. This

example this amount was $1,160.

should match the federal recover period claimed on Form 4562.

Column (h) – Multiply column (g) by the percent in column (f) and enter

Column (b) – Enter the method (200 DB, 150 DB or S/L).

the result in column (h). Example: $1,160 by 60% equals $696. This is

Column (c) – Using the following table, enter the factor for that recover

the recapture amount for this asset.

period and method.

LINE 12 – Add all amounts in column (h) and enter the result on line 12 and

Column (d) – Enter the basis for depreciation.

line 2, PART A of this schedule.

Use this table to determine the expense deduction calculated for PART B. NOTE: If Section 179 expense has been made for federal purposes for any

asset, the applicable factor to be used is in IRC §168(b)(1).

FACTORS

IRC§168

IRC§168(b)(1)

IRC§168(b)(2)

IRC§168(b)(3)

IRC§168

IRC§168(b)(1)

IRC§168(b)(2)

IRC§168(b)(3)

Recover

Depreciation

or (g) Depreciation

Recover

Depreciation

or (g) Depreciation

Period

Method

Period

Method

(year)

(200% declining

(150% declining

(Straight line or

(year)

(200% declining

(150% declining

(Straight line or

balance)

alternative)

balance)

alternative)

(200DB)

(150DB)

(S/L)

(200DB)

(150DB)

(S/L)

2.5

.077

.092

11.5

.248

.269

.075

.091

.106

.256

.277

3.5

.102

.116

12.5

.263

.285

.114

.129

.271

.293

.116

.135

.150

13.5

.278

.300

.154

.170

.285

.308

6.5

.163

.179

.299

.323

.151

.173

.190

.313

.337

7.5

.181

.199

16.5

.319

.344

.191

.208

.326

.351

8.5

.199

.217

.339

.365

.208

.226

.351

.378

9.5

.216

.235

.363

.391

.198

.224

.244

.386

.415

10.5

.232

.252

.408

.438

.240

.261

.419

.449

Form K-120ex - Kansas Expensing Deduction Schedule - 2012 Page 4

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