Statutes > Kentucky Statutes > CHAPTER 141 INCOME TAXES > 141.140 Accounting period for computation of income.

141.140 Accounting period for computation of income.

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141.140 Accounting period for computation of income. (1) If the taxpayer makes, or is required to make, a federal income tax return, the taxpayer's income shall be computed for the purposes of this chapter on the basis of <br>the same calendar or fiscal year required by the federal government, and the <br>taxpayer shall employ the same methods of accounting required for federal income <br>tax purposes. (2) If a return is made by an individual for a period of less than one (1) year, the net income, computed on the basis of the period for which a separate return is made, <br>shall be placed on an annual basis by multiplying the amount thereof by the number <br>of days in the year and dividing by the number of days included in the period for <br>which the separate return is made. The tax payable shall be such part of the tax <br>computed on the annual basis as the number of days in the period is of the number <br>of days in the year. (3) If a return is made by a corporation for a period of less than one (1) year, the taxable net income, computed on the basis of the period for which a return is made, shall be <br>placed on an annual basis by multiplying the amount thereof by the number of days <br>in the year and dividing by the number of days included in the period for which the <br>return is made. The tax payable shall be such part of the tax computed on the annual <br>basis as the number of days in the period is of the number of days in the year. Effective: March 18, 2005 <br>History: Amended 2005 Ky. Acts ch. 168, sec. 13, effective March 18, 2005. -- Amended 1956 (4th Extra. Sess.) Ky. Acts ch. 4, sec. 7, effective April 23, 1956. -- <br>Amended 1954 Ky. Acts ch. 79, sec. 11. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, <br>effective October 1, 1942, from Ky. Stat. sec. 4281b-8. Legislative Research Commission Note (3/18/2005). 2005 Ky. Acts ch. 168, sec. 165, provides that this section shall apply to tax years beginning on or after January 1, <br>2005.