I have a client who sold their home and had a $12, 500 taxable gain. The tax on federal is zero, but do they pay state tax on that?

[jecker817]

the state is Kansas.  

[IRonMaN]

What happens when you prepare the Kanas return?

[jecker817]

it includes the $12500 and taxes it

[IRonMaN]

It sounds like it taxes it then.  Have you checked the instructions to see if there is some kind of exclusion since that's what it sounds like what you are looking for.

[jecker817]

yes i have read the instructions.  thanks.  

[sjrcpa]

 Federal tax is zero because they must be in a low enough bracket where capital gains/qualified dividends are taxed at 0%.

Kansas probably does not have such a thing.

[Camp1040]

Is the taxable gain after the primary residence sale exclusiion?

[Camp1040]

My accounting 101 instructor said with a souther drawl "I spoon feed my students"

https://listwithclever.com/real-estate-blog/the-ultimate-guide-to-kansas-real-estate-taxes/

[sjrcpa]

I Was accused of being cold when I told someone I didn't think they needed to be spoon fed.

I survived. 😂

[IRonMaN]

I prefer to use the spoon to whack them on the knuckles————— but maybe that’s just me😬