Kansas

Kansas Schedule K-120 EX - Expensing Deductions

Understanding Expensing Deductions on Schedule K-120

BS

Business Tax Specialist

Tax Expert

3 min read
Published on 6 months ago
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Kansas Schedule K-120EX is a state-specific form used by taxpayers to claim an expensing deduction for tangible property placed in service in Kansas during the taxable year. This deduction is available under K.S.A. 79-32,143a and allows eligible taxpayers to deduct the cost of qualifying property from their Kansas net income, subject to certain limitations and conditions.

Eligibility and Availability

  • The expensing deduction is available to all income tax filers for taxable years commencing after December 31, 2020.
  • For taxable years after December 31, 2012, the deduction was limited to C corporations.
  • For taxable years commencing after December 31, 2013, the deduction was available to privilege tax filers.

Qualifying Property

  • The deduction applies to eligible property that qualifies for depreciation under IRC Section 168, Modified Accelerated Cost Recovery System (MACRS). The property must be placed in service in Kansas during the taxable year for which the deduction is claimed. The Kansas expensing deduction must be calculated according to the Schedule K-120EX instructions and applicable Kansas law.
  • Property must be placed in service in Kansas during the taxable year.

Filing Requirements

  • Complete Schedule K-120EX and attach it to the applicable Kansas income tax or privilege tax return.
  • Attach a completed Schedule K-120EX with the Kansas return. Taxpayers claiming the deduction should also include a copy of federal Form 4562 and any supporting schedules required to allow the Kansas Department of Revenue to reconcile the federal depreciation amounts with the Kansas expensing deduction claimed.
  • The Kansas expensing deduction election must be made by the due date of the original return, including any extension of time to file. The deduction may only be claimed for the taxable year in which the eligible property is placed in service in Kansas.
  • Retain records supporting the qualifying property, cost basis, and placed-in-service date.

Software Filing Guidance

  • When filing online, users can add Schedule K-120EX by navigating to the State section, selecting Kansas, and answering "yes" to "Do you want to claim another Expensing Deduction?"
  • Follow on-screen instructions to complete the form within the software.

Source:

Kansas Schedule K-120EX - Expensing Deduction Schedule (2025)

Disclaimer: Always verify details with the official Federal or State Department of Revenue Forms and Instructions. This information is for general guidance only and may not apply to your specific situation. For complex tax matters, consult a CPA or tax attorney.

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Key Takeaways

  • Understanding tax deductions can significantly reduce your tax liability
  • Keep detailed records of all tax-related expenses and documents
  • Consult with a tax professional for complex situations

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