ID H0133

Allows individual taxpayers to deduct 80% of capital gains in 2001 and 60% in subsequent years from Idaho taxable income when reporting capital gain net income.

Limits the deduction to capital gain net income from qualified property with Idaho situs at time of sale, excluding gains treated as ordinary income under federal tax code.

Defines qualified property to include real property held at least 12 months, tangible personal property used in revenue-producing enterprises for at least 12 months, and livestock or timber meeting specific holding periods for farming and ranching operations.

Applies holding period requirements from Internal Revenue Code Section 1223, excluding time periods when property was held by non-S corporations and excluding holding periods of property given up in exchanges.

Allows capital gains deduction to pass-through entity owners based on their distributive share when the entity's gross income is more than one-half from farming or ranching operations in Idaho.