K.A.R. 92-12-72
Two or more businesses of a single taxpayer.
A taxpayer may have more than one (1) “trade or business.” In such cases, it is necessary to determine the business income attributable to each separate trade or business. The income of each business is then apportioned by an apportionment formula which takes into consideration the instate and outstate factors which relate to the trade or business the income of which is being apportioned.
The determination of whether the activities of the taxpayer constitute a single trade or business or more than one (1) trade or business will turn on the facts in each case. In general, the activities of the taxpayer will be considered a single business if there is evidence to indicate that the segments under consideration are integrated with, dependent upon, or contribute to each other and the operations of the taxpayer as a whole. The following factors are considered to be good indicia of a single trade or business, and the presence of any of these factors creates a strong presumption that the activities of the taxpayer constitute a single trade or business:
# (a)
A taxpayer is generally engaged in a single trade or business when all of its activities are in the same general line.
# (b)
A taxpayer is almost always engaged in a single trade or business when its various divisions or segments are engaged in different steps in a large, vertically structured enterprise.
# (c)
A taxpayer which might otherwise be considered as engaged in more than one (1) trade or business is properly considered as engaged in one
(1) trade or business when there is a strong central management, coupled with the existence of centralized departments for such functions as financing, advertising, research, or purchasing. Thus, some conglomerates may properly be considered as engaged in only one (1) trade or business when the central executive officers are normally in-92-12-73 DEPARTMENT OF REVENUE volved in the operations of the various divisions and there are centralized offices which perform for the divisions the normal matters which a truly independent business would perform for itself, such as accounting, personnel, insurance, legal, purchasing, advertising, or financing. (Authorized by K.S.A. 79-3236, 79-3271, 79-4301; effective May 1, 1979.)
Source: official source document (2022 KAR Book 4, Kansas Secretary of State)
In this article (40 sections)
- 92-12-53 · Methods of determining income allocable to Kansas business.
- 92-12-54 · 92-12-54
- 92-12-55 · Returns; who shall file.
- 92-12-56 · 92-12-56
- 92-12-57 · Records and income tax forms.
- 92-12-58 · Payment of tax; receipt; insufficient fund checks.
- 92-12-59 · 92-12-59
- 92-12-60 · 92-12-60
- 92-12-61 · 92-12-61
- 92-12-62 · 92-12-62
- 92-12-63 · 92-12-63
- 92-12-64 · Claims for refund by taxpayers.
- 92-12-65 · Powers of the director of taxation.
- 92-12-66 · 92-12-66
- 92-12-66a · Abatement of final tax liabilities.
- 92-12-67 · Extension of time for filing returns.
- 92-12-68 · 92-12-68
- 92-12-69 · 92-12-69
- 92-12-70 · 92-12-70
- 92-12-71 · Business and nonbusiness income defined.
- 92-12-72 · Two or more businesses of a single taxpayer.
- 92-12-73 · Business and nonbusiness income: application of definitions.
- 92-12-74 · Proration of deductions.
- 92-12-75 · Definitions.
- 92-12-76 · Apportionment.
- 92-12-77 · Combined income method of reporting.
- 92-12-78 · Allocation.
- 92-12-79 · Consistency and uniformity in reporting.
- 92-12-80 · Taxable in another state; in general.
- 92-12-81 · Taxable in another state; when a corporation is “subject to”…
- 92-12-82 · Taxable in another state; when a state has jurisdiction to…
- 92-12-83 · Apportionment formula.
- 92-12-84 · Property factor; in general.
- 92-12-85 · Property factor; property used for the production of…
- 92-12-86 · Property factor; consistency in reporting.
- 92-12-87 · Property factor; numerator.
- 92-12-88 · Property factor; valuation of owned property.
- 92-12-89 · Property factor; valuation of rented property.
- 92-12-90 · Property factor; averaging property values.
- 92-12-91 · Payroll factor; in general.