Beginning in 2013 Kansas individual taxpayers will have a significant reduction in tax rates. Most business income will be exempt from taxation in the state.
In the top bracket, there is a 24% rate reduction.
Business income taxation
Beginning in 2013, most business income will be exempt from Kansas income tax, if you operate your business as:
S Corporation (see note)
Limited Liability Company
*Note: S Corporation salaries will be taxable, the “flow thru” net business income is exempt.
In addition, net income from farming, farm rental, rental real estate and estate/trusts will not be subject to Kansas income tax in 2013.
One very important aspect of this bill you should not forget, the income from sources listed above will be exempt from taxation, however, losses will not be deductible.
All Kansas taxpayers should consult with their tax professional regarding the importance of tax planning, or call Peter Newman CPA for FREE Assistance. 913.381.4141