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ID H0514
Bill
Status
3/20/2018
Primary Sponsor
Revenue and Taxation Committee
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AI Summary
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Allows taxpayers to deduct 80% of capital gains in 2001 and 60% in subsequent years from the sale or exchange of qualified property when determining Idaho taxable income.
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Defines qualified property to include real property held at least 12 months, tangible personal property used in revenue-producing enterprises for 12 months, breeding livestock held 12-24 months, timber held 24 months, and partnership interests attributable to qualified real property held 12 months.
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Establishes two methods for determining capital gains attributable to qualified real property in partnership interests: fair market valuation using qualified appraisals, county assessor valuations, or other evidence acceptable to the state tax commission; or adjusted basis allocation based on the proportion of adjusted basis of qualified real property to all partnership property.
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Specifies that property depreciated under Internal Revenue Code section 1245 is not eligible to be treated as real property for the deduction.
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Requires part-year resident and nonresident owners of multistate entities to compute the allowable deduction according to state tax commission rules, with the act applying retroactively to January 1, 2018.
Legislative Description
Amends existing law to revise provisions regarding certain qualified property held by an estate, trust, S corporation, partnership, limited liability company or an individual, to establish provisions regarding fair market valuation, to establish provisions regarding adjusted basis allocation and to establish provisions regarding certain part-year resident and nonresident owners of multistate entities.
TAXATION
Last Action
Reported Signed by Governor on March 20, 2018 Session Law Chapter 186 Effective: Retroactive to 01/01/2018
3/20/2018