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KS Notice 15-08 Kansas Individual Income Tax 2015-07-01

Can Kansas growers subtract the gain from selling Christmas trees grown in Kansas?

Short answer: Kansas Notice 15-08 explains that Senate Substitute for House Bill 2109 (2015) amended K.S.A. 79-32,117 to create a new subtraction modification, in subsection (c)(xxiv), for the net gain from the sale of Christmas trees grown in Kansas and held by the taxpayer for six years or more. The subtraction reduces Kansas adjusted gross income and applies to tax year 2014 and later years. It can be claimed on an amended 2014 return by entering the net gain from qualifying Christmas trees on Schedule S, with a copy of federal Form 4797 included.

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This page answers the general question as of 2015. Ezel answers yours, under current Kansas tax law, with citations.

Currency note: this ruling is from 2015
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Kansas Department of Revenue Notice: public guidance the Department issues to explain Kansas tax law, most often a newly enacted statute. It states the Department's general interpretation and administration of the law; it does not have the force of law and is not a private ruling issued to any one taxpayer. It reflects the statutes, regulations, and rates in effect on its issue date and may since have been amended or superseded by a later notice or law change, so confirm it is still current before relying on it. Kansas state and local sales and use taxes are administered centrally by the Department, so there is no self-collected home-rule city tax outside its scope. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
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Plain-English summary

Kansas Notice 15-08 explains that Senate Substitute for House Bill 2109 (2015) amended K.S.A. 79-32,117 to create a new subtraction modification for the net gain from selling Christmas trees grown in Kansas.

The modification. New subsection (c)(xxiv) allows the net gain from the sale of Christmas trees grown in Kansas and held by the taxpayer for six years or more to be subtracted from federal adjusted gross income in figuring Kansas adjusted gross income.

When it applies. Tax year 2014 and later. It can be claimed on an amended 2014 return by entering the qualifying net gain on Schedule S, with a copy of federal Form 4797 included.

What this means for you

Kansas Christmas tree growers

  • If you sold Christmas trees grown in Kansas that you held for six years or more, subtract that net gain on Schedule S; you may amend a 2014 return to claim it.

Common questions

What qualifies for the subtraction? Net gain from selling Christmas trees grown in Kansas and held six years or more.

Which years does it cover? Tax year 2014 and later.

How do I claim it? Enter the net gain on Schedule S and include a copy of federal Form 4797; a 2014 amended return may be filed.

Citations and references

  • Senate Substitute for House Bill 2109 (2015), Section 3 -- amended K.S.A. 79-32,117 to add subsection (c)(xxiv), subtracting the net gain from Kansas-grown Christmas trees held six years or more, for tax year 2014 and later.

Source

Original ruling text

Policy & Research Phone: 785-296-3081
915 SW Harrison St FAX: 785-296-7928
Topeka KS 66612-1588 www.ksrevenue.org
Nick Jordan, Secretary Department of Revenue Sam Brownback, Governor
Richard Cram, Director

                                    NOTICE 15-08

               MODIFICATION FOR CHRISTMAS TREES GROWN IN KANSAS
                                 (JULY 1, 2015)

 During the 2015 Legislative Session Senate Substitute for House Bill 2109 was passed and

signed into law. Section 3 of the Bill amends K.S.A. 79-32,117, which relates to modifications
made in computing Kansas adjusted gross income.

  The calculation of Kansas income tax begins with federal adjusted gross income. Certain

addition and subtraction modifications are then made in order to determine Kansas adjusted
gross income. The amendment to K.S.A. 79-32,117 creates a new modification which allows the
net gain from the sale of Christmas trees grown in Kansas and held for six (6) years or more to
be subtracted from federal adjusted gross income. The amended language, found in subsection
(c)(xxiv) of K.S.A. 79-32,117, provides:

      (xxiv) For all taxable years beginning after December 31, 2013, the net gain
 from the sale from Christmas trees grown in Kansas and held by the taxpayer for six
 years or more.

 The new subtraction modification found in amended K.S.A. 79-32,117(c)(xxiv) applies to

tax year 2014 and later years. It can be claimed on an amended 2014 income tax return
by entering on Schedule S the amount of net gain from sale of qualifying Christmas
trees (as described in new 79-32,117(c)(xxiv)). A copy of federal Schedule 4797 should
be included with the amended return.

                                 Taxpayer Assistance

Additional copies of this notice, forms or publications are available from our web site,
www.ksrevenue.org. If you have questions about this Notice, please contact:

                             Taxpayer Assistance Center
                            Kansas Department of Revenue
                            915 SW Harrison St., 1st Floor
                              Topeka, KS 66612-1588
                                Phone: 785-368-8222
                                 Fax: 785-291-3614

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