Fillable Form K-120ex - Kansas Expensing Deduction Schedule

Column (d) – Enter the basis for depreciation.

K-40 and K-41 filers (recapture only) STOP HERE. For this type of taxpayer,

Column (e) – Enter any bonus depreciation received.

the expensing is not allowed after the 2012 tax year unless you are a shareholder/

partner of a K-120S with a fiscal year ended in 2013 (see example in Pass-

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

Through Entity of the Specific Line Instructions). You should multiply your

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

ownership percentage times the amount on line 2 and enter it as an addition

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

modification on line A5, Schedule S (supplement to K-40) or line 24d, Form K-41.

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

K-120S filers STOP HERE. If the expense on line 1 is greater than the recapture

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

on line 2, enter your ownership percentage of the net expense on line 19, Form

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

K-120S. If the recapture on line 2 is greater than the expense on line 1, enter your

ownership percentage of the net recapture on line 18, Form K-120S. NOTE: If the

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

partner/shareholder is an individual or fiduciary, you must follow the rules for

line 1, PART A of this schedule.

K-40 and K-41 listed above in this box.

PART C – RECAPTURE OF EXPENSING DEDUCTIONS PREVIOUSLY CLAIMED

K-120 and K-121 filers with expense greater than recapture, complete lines 1

through 10. If the recapture on line 2 is greater than the expense on line 1, STOP

The following instructions reference the information

HERE and enter the amount from line 5 on line 17 of Form K-120 or Form K-121.

used in the “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

period that was claimed on the initial expense deduction for this

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

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

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

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

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

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

was claimed as an expense deduction. Example: 2014.

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

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

Example: 2016.

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

Form K-120 or K-121, line 18. If filing combined, each entity using the

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

deduction should record their amount used on line 18 of the K-121. The

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

total column of K-121, line 18 should equal the amount on line 9.

(d): Example: 2016 - 2014 = 2.

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

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

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

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

Example: Subtracting the recapture factor of 2 from the recover period

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

of 5 equals 3.

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

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

PART B – COMPUTATION OF KANSAS EXPENSING

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

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

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

recapture of 60%.

expense and enclose Federal Form 4562 with this schedule to support

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

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

example this amount was $1,160.

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

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

should match the federal recover period claimed on Form 4562.

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

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

the recapture amount for this asset.

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

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

period and method.

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 - 2013 Page 4

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