Fillable Form Cg - Idaho Capital Gains Deduction

EFO00093

07-01-15

Instructions for Idaho Form CG

General Information

Form CG is used to compute an individual's Idaho capital

NOTE: Gains from the sale of stocks and other intangibles

gains deduction. The deduction is 60% of the capital gain net

don't qualify.

income included in federal taxable income from the sale of Idaho

property. Only capital gains from the following Idaho property

Refer to the Internal Revenue Code for definitions of capital

qualify:

assets, short-term and long-term capital gains and losses,

computations of basis, and gain from disposition of depreciable

(a) Real property* held for at least 12 months, or

property.

(b) Tangible personal property used in a revenue-producing

enterprise and held for at least 12 months.

"Capital gain net income" means the excess of the gains from

A revenue-producing enterprise means:

sales or exchanges of capital assets over the losses from such

Producing, assembling, fabricating, manufacturing, or

sales or exchanges.

processing any agricultural, mineral, or manufactured

product;

A capital loss carryover from qualifying property reduces the

2) Storing, warehousing, distributing, or selling at

current year gains from eligible property. Losses from property

wholesale any products of agriculture, mining, or

not eligible for this deduction don't reduce gains from eligible

manufacturing;

property. The Idaho capital gains deduction can't exceed the

3) Feeding livestock at a feedlot;

capital gain net income reported on the federal return. Gains

4 ) O perating laboratories or other facilities for scientific,

treated as ordinary income don't qualify for the deduction.

agricultural, animal husbandry, or industrial research,

development, or testing.

Distributive Share of Gain or Loss From S Corporations,

Partnerships, Trusts, and Estates

livestock used for breeding held for at least 12 months,

Capital gain from qualifying property, described above, held by S

•

For Individuals – if more than one-half of the taxpayer's

corporations, partnerships, trusts, and estates, is eligible for the

gross income is from farming or ranching in Idaho, or

Idaho capital gains deduction.

•

For Members of a Pass-through Entity – if more than

one-half of the entity's gross income is from farming

The amount of gain or loss must be computed by the

or ranching in Idaho, the deduction is available on the

S corporation, partnership, trust, or estate and provided to

individual owners' distributive share.

the pass-through owner on Form ID K-1, Part B, line 9. The

(d) Timber held for at least 24 months.

deduction is claimed on the return of the individual shareholder,

partner, or beneficiary. The partnership, S corporation, trust, or

The term "real property" means land and includes the following:

estate must provide supplemental information to the partners,

shareholders, or beneficiaries with Form ID K-1 identifying the

1 ) a "qualified conservation easement," as defined in section

type of property sold, the date of sale, and the holding period of

2031(c)(8)(B) of the Internal Revenue Code, conveyed to

the property by the partnership, S corporation, trust, or estate.

a "Qualified Organization" as defined in section 170(h) of

the Internal Revenue Code;

An owner receiving a distribution from a pass-through entity can

2 ) g razing permits or leases issued by the U.S. Forest

include the holding period of the entity when determining the

Service, the Bureau of Land Management, or the Idaho

holding period requirement for capital gains purposes.

Department of Lands, if such permit is transferred

simultaneously with the transfer of the "base property";

and

3 ) a ny other property, defined in section 1250(c) of the

Internal Revenue Code that is conveyed in perpetuity, the

transfer of which would be required to be in writing by

section 9-503, Idaho Code.

Form Cg - Idaho Capital Gains Deduction - 2015 Page 2

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