Fillable Form Cg - Idaho Capital Gains Deduction

EFO00093

Instructions for Idaho Form CG

09-24-12

General Information

Refer to the Internal Revenue Code for definitions of

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

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

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

net income included in federal taxable income from the sale

losses, computations of basis, and gain from disposition of

of Idaho property. Only capital gains from the following Idaho

depreciable property.

property qualify:

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

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

sales or exchanges of capital assets over the losses from

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

such sales or exchanges.

enterprise and held for at least 12 months.

A revenue-producing enterprise means:

A capital loss carryover from qualifying property reduces

1) Producing, assembling, fabricating, manufacturing or

the current year gains from eligible property. Losses from

processing any agricultural, mineral or manufactured

property not eligible for this deduction do not reduce gains

product;

from eligible property. The Idaho capital gains deduction

2) Storing, warehousing, distributing or selling at

cannot exceed the capital gain net income reported on the

wholesale any products of agriculture, mining or

federal return. Gains treated as ordinary income do not

manufacturing;

qualify for the deduction.

3) Feeding livestock at a feedlot;

4 ) Operating laboratories or other facilities for scientific,

Distributive Share of Gain or Loss From S Corporations,

agricultural, animal husbandry or industrial research,

Partnerships, Trusts and Estates

development or testing.

Capital gain from qualifying property, described above, held

by S corporations, partnerships, trusts and estates, is eligible

livestock used for breeding held for at least 12 months,

for the Idaho capital gains deduction.

if the owner received more than one-half of his gross

income from farming or ranching in Idaho, or

The amount of gain or loss must be computed by the

(d) Timber held for at least 24 months.

S corporation, partnership, trust or estate and provided

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

NOTE: Gains from the sale of stocks, easements,

The deduction is claimed on the return of the individual

shareholder, partner or beneficiary. The partnership, S

leasehold real properties, and other intangibles do not

qualify.

corporation, trust or estate must provide supplemental

information to the partners, shareholders or beneficiaries

with Form ID K-1 identifying the type of property sold, the

date of sale, and the holding period of the property by the

partnership, S corporation, trust, or estate.

Specific Instructions

Line 1. List qualifying capital gains and losses. Do not

Line 2. Enter the taxable gain from the sale of your Idaho

include gains and losses reported on lines 2 through 5.

home, from federal Schedule D. If you are reporting a gain

that qualifies from previous installment sales, see line 3.

Column a Describe the type of property. Identify the Idaho

location at the date of sale.

Line 3. If you used federal Form 6252 to report the

installment method for the gain on the sale of eligible property

Column b Identify the month, day, and year the property

on your federal return, compute your capital gains deduction

was acquired.

using the current year's taxable portion of the installment

payment. Include federal Form 6252. Capital gain from

Column c

Identify the month, day, and year the property

an installment sale is not eligible for the Idaho capital gains

was sold.

deduction if the property was not held for the minimum

holding period by the date sold.

Column d Enter the sales price.

Line 4. Enter the eligible capital gain net income from federal

Column e Enter the cost or other basis. Basis is computed

Form 4797. Do not include ordinary gains reported on federal

under the appropriate provisions of the Internal

Form 4797, Part II.

Revenue Code.

Line 5. Enter your distributive share of qualifying capital gain

Column f

Compute your gain or loss by subtracting your

or loss from partnerships, S corporations, trusts and estates.

If filing form 40, enter the amount shown from Form ID K-1,

basis (column e) from the sales price (column

Part B, line 9. If filing Form 43, enter the amount of qualified

d).

gains or losses included on Form 43, line 27; which, is usually

the amount from Form ID K-1, Part B, line 9 multiplied by

percentage shown on Form ID K-1, Part A, line 1.

Form Cg - Idaho Capital Gains Deduction - 2012 Page 2

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