2021 Kansas K-120EX form is wrong

[jkfmsi]

For taxable years after 12/31/2020, K-120EX Part B column (e) now includes Section 179 AND Bonus Depreciation. In prior years, only Bonus Depreciation was included.  It appears that the change was made in July 2021.  I have several Kansas K-120 tax returns that gave clients a deduction that they were not eligible for.  We missed the wording change on the form and the software is not populating the amount correctly. Has anyone else had this come up?

[DS20]

Hi JKFMSI,

If you select the “eligible” checkbox for a section 179 asset on the K-120EX Worksheet, then, to accommodate for the tax year ’21 form update, we made Part B, Col. E user-enterable. The preparer must enter the amount of Section 179 deduction taken for Kansas purposes in Col. E (as stated in the form instructions: “Column (e) – Enter… any expense deduction being claimed for such property under I.R.C. § 179”). Once the correct Section 179 deduction is entered in Col. E, the proper expense deduction will calculate in Col. G.

[jkfmsi]

I see that.  We also have a handful of returns where that field is not enterable. Any idea why those would be different?

[DS20]

“We also have a handful of returns where that field is not enterable”  --> This should only be the case for assets that are Bonus (168(K)) eligible, when TCJA made bonus assets 100% deductible until TY ’23, we started auto populating Col. E. However, because of threshold limitation for Section 179, it is best for the preparer to enter the correct deduction amount for Section 179-eligible assets in Col. E. We will work to add diagnostics to clarify these issues for TY '22, hope that helps. Thanks again for bringing this to our attention!