IDAPA 35.01.01.173 — IDAHO CAPITAL GAINS DEDUCTION -- PASS-THROUGH ENTITIES (RULE 173)

Section 63-3022H, Idaho Code
01.
In General.
(4-6-23)
a.
Qualified property held by an S corporation, partnership, trust, or estate may be eligible for the
Idaho capital gains deduction. The deduction is allowed only on the return of an individual shareholder, individual
partner, or individual beneficiary.
(4-6-23)
b.
Partnerships, S corporations, trusts, and estates that pay the tax for an electing individual pursuant
to Section 63-3022L, Idaho Code, are not allowed to claim a capital gains deduction.
(4-6-23)
02.
Multistate Entities. A nonresident shareholder of an S corporation or a nonresident partner of a
partnership required to allocate and apportion income as set forth in Section 63-3027, Idaho Code, is to compute his
Idaho capital gains deduction on his interest in income of that portion of the qualifying capital gains allocated or
apportioned to Idaho.
(4-6-23)
03.
Examples. Available at Income Tax Rules Examples.
(4-6-23)
a.
An Idaho resident partner must report all partnership income to Idaho. As a result, his share of
partnership income, including any capital gain included in apportionable income, is not limited by the apportionment
factor of the partnership.
(4-6-23)
b.
Gains that cannot be traced back to the sale of Idaho qualifying property do not qualify for the
Idaho capital gains deduction.
(4-6-23)
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.01
Idaho State Tax Commission
Income Tax Administrative Rules
Section 180
Page 26